In most mergers,one firm acquires another firm or an identifiable portion of another firm either as a(n):

Question

Quizplus · Accepted Answer

In most mergers, the acquiring firm either acquires the stock of the target company (stock acquisition) or acquires a portion of the target company's assets (asset acquisition). Therefore, option A is the best choice. Option B is incorrect as an outright purchase is not a common way of acquiring a portion of another firm. Option C and D are also incorrect as stock swap, asset swap, debt swap, and long-term payouts are not typical methods of acquiring another firm.

In Most Mergers,one Firm Acquires Another Firm or an Identifiable