Excursion Corporation recently bought out Suburban Engineering for an undisclosed amount of money.It now owns all of Suburban's properties and obligations.This is an example of a(n):
A)merger.
B)combination.
C)expropriation.
D)acquisition.

Question

Quizplus · Accepted Answer

An acquisition is the purchase of one company by another, with the acquiring company obtaining all of the assets, liabilities, and obligations of the acquired company. This scenario fits the description of an acquisition, as Excursion Corporation bought out Suburban Engineering and now owns all of its properties and obligations.

Excursion Corporation Recently Bought Out Suburban Engineering for an Undisclosed