Takeover of one firm by another

Question

Quizplus · Accepted Answer

Takeover of one firm by another changes the ownership of the acquired firm. This means that the acquiring firm gains control over the acquired firm, including its assets, liabilities, and operations. It does not necessarily tie up the nation's capital wastefully or use up the economy's credit supply, and while it may initially reduce the value of the acquired firm, the ultimate outcome will depend on the performance of the new combined entity.

Takeover of One Firm by Another