Question

When a company takes over another one and clearly becomes a new owner, the action is called_________.

• A. Merger
• B. Acquisition
• C. Strategic Alliance
• D. None of the above

Answer 1

Answer: (B)

Acquisition

The terms "mergers" and "acquisitions" are often used interchangeably, although in actuality, they hold slightly different meanings. When one company takes over another entity, and establishes itself as the new owner, the purchase is called an acquisition.