A(n) ____ is the transfer of the control of operations and management from one firm to another with the former becoming a unit of the latter.
A) joint venture
B) merger
C) acquisition
D) contractual alliance

Question

A(n) ____ is the transfer of the control of operations and management from one firm to another with the former becoming a unit of the latter.
A) joint venture 
B) merger 
C) acquisition 
D) contractual alliance

Quizplus · Accepted Answer

An acquisition involves one company taking over another and becoming the new owner. The acquired company's operations and management become a unit of the acquiring company. A joint venture is a partnership between two companies, a merger involves two companies merging and becoming one entity, and a contractual alliance is a partnership where the terms are outlined in a legally binding contract. None of these fully match the description given in the question like the acquisition does.

A(n) ____ Is the Transfer of the Control of Operations