One method of expanding a business is the purchase of an entire company or part of it so that the entity is completely absorbed and no longer exists as a separate company.This is called:
A)a joint venture.
B)an acquisition.
C)a subsidiary.
D)take over.

Question

Quizplus · Accepted Answer

An acquisition is the purchase of an entire company or part of it so that it becomes a part of the acquiring company. In an acquisition, the acquired company no longer exists as a separate entity. A joint venture is a business relationship between two or more parties to undertake a specific project or activity together. A subsidiary is a company that is controlled by another company, called the parent company, through ownership of a majority of its voting stock. A takeover is the acquisition of control of a company by another company, often through the purchase of a controlling interest in the target company's stock. While all four options may be used in the expansion of a business, the best choice for the given scenario is B) an acquisition.

One Method of Expanding a Business Is the Purchase of an Entire