Choose the best definition of an acquisition.
A) An acquisition occurs when one company sells shares of the company on a public exchange.
B) An acquisition is separating one company into two or more separate legal entities.
C) An acquisition is a combination of two separate companies into a new legal entity.
D) An acquisition happens when one company purchases another company to acquire all or most of the shares, and therefore control over that company.

Question

Quizplus · Accepted Answer

An acquisition is defined as the process where one company purchases most or all of another company's shares to gain control of that company. This is different from a merger (which is a combination of two companies) or an initial public offering (selling shares on a public exchange).

Choose the Best Definition of an Acquisition