When one group of shareholders transfers control of a firm to a different group of shareholders, the transfer is referred to in general terms as a:
A) Leveraged buyout.
B) Strategic alliance.
C) Joint venture.
D) Horizontal acquisition.
E) Takeover.

Question

Quizplus · Accepted Answer

A takeover refers to the acquisition of one company by another, where the control of the firm is transferred from one group of shareholders to another. This can be done through various means, including purchasing a majority stake in the target company.

When One Group of Shareholders Transfers Control of a Firm