When one group of shareholders transfers control of a ﬁrm to a different group of shareholders, the transfer is referred to in general terms as a:
A) Leveraged buyout.
B) Strategic alliance.
C) Joint venture.
D) Horizontal acquisition.
E) Takeover.

Question

Quizplus · Accepted Answer

The term "takeover" refers to the acquisition of a controlling interest in a company by another company or group of shareholders. It involves one group of shareholders transferring control of the company to a different group of shareholders. A leveraged buyout, strategic alliance, joint venture, and horizontal acquisition are all different types of corporate transactions that do not necessarily involve a change of control.

When One Group of Shareholders Transfers Control of a ﬁRm