What is the term for the act of one company purchasing another company?

What is the term for the act of one company purchasing another company?

• A. Acquisition
• B. Absenteeism
• C. 360-degree feedback
• D. ADDIE model

Answer: (A)

Acquisition is the act of one company purchasing another to gain control. The acquiring company buys enough shares or assets to take over decision-making and governance, and the target may become a subsidiary or be absorbed into the parent’s operations. This is a common growth strategy and affects governance, culture, and financial reporting, since the acquired business’s assets and liabilities are consolidated with the acquirer’s. It contrasts with a merger, where two firms combine into a new entity, and with other terms like absenteeism (missing work), 360-degree feedback (multisource performance review), and the ADDIE model (an instructional design framework). In brief, acquisition describes one company buying another to achieve control.

Acquisition is the act of one company purchasing another to gain control. The acquiring company buys enough shares or assets to take over decision-making and governance, and the target may become a subsidiary or be absorbed into the parent’s operations. This is a common growth strategy and affects governance, culture, and financial reporting, since the acquired business’s assets and liabilities are consolidated with the acquirer’s. It contrasts with a merger, where two firms combine into a new entity, and with other terms like absenteeism (missing work), 360-degree feedback (multisource performance review), and the ADDIE model (an instructional design framework). In brief, acquisition describes one company buying another to achieve control.