Asked by Johne Stewart on Feb 18, 2024
Verified
Company X buys all of the ownership stakes of Company Z.Company X then assumes control of Company Z.Which term describes this situation?
A) litigation
B) merger
C) divestiture
D) acquisition
- Understanding the concept of control in a business context.
- Familiarity with the term "merger" and its meaning in the context of business transactions.
- Understanding the concept of ownership stakes in a company.
Verified Answer
MP
Milana PilipchukFeb 18, 2024
Final Answer :
D
Explanation :
The situation described is an acquisition, where one company purchases another company and assumes control over it.
Learning Objectives
- Understanding the concept of control in a business context.
- Familiarity with the term "merger" and its meaning in the context of business transactions.
- Understanding the concept of ownership stakes in a company.
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