Hubbard,Rice and Galvin define an acquisition as:
A)the sale of 50.1% of shares by an organisation on floatation
B)a mutually agreed consolidation under joint ownership of two organisations
C)the purchase of enough shares to obtain decision-making control over an organisation
D)majority ownership by 51% of directors

Question

Quizplus · Accepted Answer

Hubbard, Rice and Galvin define an acquisition as "the purchase of enough shares to obtain decision-making control over an organization." Option C is the only one that aligns with this definition. Option A refers to the sale of 50.1% of shares during the flotation process, which does not necessarily indicate control over the organization. Option B refers to a consolidation under joint ownership, which is not necessarily an acquisition. Option D refers to majority ownership by directors, which may not necessarily be linked to the purchase of shares and acquisition of control over the organization.

Hubbard,Rice and Galvin Define an Acquisition As