Laurie Corp. ,a major watch manufacturer,purchases Smith Inc. ,a smaller company that makes watch bands.Following this purchase,the watch band operations are performed by the Smith Division of Laurie Corp.This scenario is an example of an acquisition.

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This scenario describes an acquisition, which is the process of one company buying another company, often with the aim of increasing its size, scale, and efficiency. In this case, Laurie Corp. has acquired Smith Inc. and now operates its watch band operations through the Smith Division.