An acquisition takes place when
A) two firms who previously have been buyer and seller merge.
B) two firms join together to form a new entity.
C) one firm consolidates with another.
D) one firm simply buys another.
E) management adopts a defence to make its firm less attractive.

Question

Quizplus · Accepted Answer

An acquisition takes place when one firm simply buys another. This is different from a merger, which is when two firms join together to form a new entity. Consolidation is also a form of merger. A firm adopting a defense strategy to make itself less attractive is not an acquisition.

An Acquisition Takes Place When