ECONOMICS

COST ACCOUNTING

FINANCIAL TERMINOLOGY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Another words for purchase. Normally used for very large amounts, such as buildings, factories, or another company
A
Acquisition
B
Accounts receivable
C
Accounts payable
D
Affiliate
Explanation: 

Detailed explanation-1: -An acquisition is a business transaction that occurs when one company purchases and gains control over another company. These transactions are a core part of mergers and acquisitions (M&A), a career path in corporate law or finance that focuses on the buying, selling, and consolidation of companies.

Detailed explanation-2: -There are four main types of acquisitions based on the relationship between the buyer and seller: horizontal, vertical, conglomerate, and congeneric.

Detailed explanation-3: -An acquisition is when one company purchases most or all of another company’s shares to gain control of that company. Purchasing more than 50% of a target firm’s stock and other assets allows the acquirer to make decisions about the newly acquired assets without the approval of the company’s other shareholders.

Detailed explanation-4: -Cost of acquisition is the total of expenses incurred when a business acquires a new client or a new asset. In accounting, the cost of acquisition is a line item that includes all expenses related to buying an asset. In sales and marketing, the cost of acquisition includes all the costs of acquiring new customers.

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