The type of business combination in which the acquiring firm becomes the parent and the target a subsidiary is:
A)a consolidation.
B)an acquisition.
C)a merger.
D)b and c

Question

Quizplus · Accepted Answer

An acquisition is the type of business combination where the acquiring firm takes over another firm (the target) and makes it a subsidiary, without necessarily merging the two firms into a single entity. This contrasts with a merger, where two companies combine to form a new entity, or a consolidation, which is similar to a merger but can involve more than two companies.

The Type of Business Combination in Which the Acquiring Firm