BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The firm that acquires a business and sell it to another company for profit is
A
seller
B
corporate company
C
promoter
D
a vendor
Explanation: 

Detailed explanation-1: -In general, “acquisition” describes a transaction, wherein one firm absorbs another firm via a takeover. The term “merger” is used when the purchasing and target companies mutually combine to form a completely new entity.

Detailed explanation-2: -B2B is short for “business to business.” It’s a business model in which the companies involved create products and services for other businesses and organizations.

Detailed explanation-3: -There are four main types of acquisitions based on the relationship between the buyer and seller: horizontal, vertical, conglomerate, and congeneric.

Detailed explanation-4: -A horizontal acquisition is when one company acquires another company in the same industry and works at the same production stage. The new combined entity may be in a better competitive position due to increased market share or scalability than the standalone companies combined to form it.

There is 1 question to complete.