chapter 04 assignment: choosing a form of business ownership\n22 of 25\ntotal points: 21/25\nattempts left…
chapter 04 assignment: choosing a form of business ownership\n22 of 25\ntotal points: 21/25\nattempts left: 1\nwhich of the following is correct regarding mergers and acquisitions?\nthe term acquisition is generally used to reference a small corporations purchase of a large corporation by means of a leveraged (financed) buyout.\nan acquisition is essentially the same thing as a merger.\nthe combining of two corporations to form two new businesses is called a merger.\nmost mergers and acquisitions are hostile.
Answer
Brief Explanations:
An acquisition is when one company takes over another, and a merger is a combination of two companies into one. In a broad - sense, an acquisition can be seen as a form of merger. The first option is incorrect as it's usually a large corporation buying a smaller one in a leveraged buyout. The third option is wrong as a merger forms one new business. And most mergers and acquisitions are not hostile; many are friendly.
Answer:
An acquisition is essentially the same thing as a merger.