A firm engages in a(n) ________ when it purchases a second firm.
A) acquisition
B) joint venture
C) strategic alliance
D) equity alliance

Question

Quizplus · Accepted Answer

An acquisition occurs when a firm purchases another firm, thus becoming its new owner. This can lead to consolidation of resources, increased market share, and access to new markets or technologies. A joint venture is a partnership between two or more firms to pursue a specific business opportunity, while a strategic alliance involves a long-term partnership between firms to achieve shared objectives. An equity alliance involves firms taking partial ownership stakes in each other.

A Firm Engages in A(n) ________ When It Purchases a Second