The purchase of one company by another with no new company being formed is called a(n) _____.
A)acquisition
B)merger
C)hostile takeover
D)investment

Question

Quizplus · Accepted Answer

An acquisition refers to one company purchasing another, while maintaining separate identities. This is different from a merger, which combines two companies into a new entity, and a hostile takeover, where the acquiring company takes control against the wishes of the target company's management. Investment refers to putting money into a company with the hope of earning a return.

The Purchase of One Company by Another with No New