What is the term for when one firm buys another firm?
A) acquisition
B) conglomeration
C) joint venture
D) merger

Question

Quizplus · Accepted Answer

Acquisition refers to the process of one firm buying another firm, typically by purchasing a controlling stake in the company or all of its assets. This differs from a merger, where two firms combine to form a new entity. Conglomeration refers to the process of a company diversifying its business by acquiring companies in unrelated industries, and a joint venture refers to a partnership between two companies to undertake a specific project or task.

What Is the Term for When One Firm Buys Another