One Company Wishes to Acquire Another

question 74

Multiple Choice

One company wishes to acquire another.Which of the following forms of acquisition does not require a formal vote by the shareholders of the acquired firm?

• A)Merger
• B)Acquisition of equity
• C)Acquisition of assets
• D)Consolidation
• E)All of the above require a formal vote.

---

Definitions:

Pure Competition

A market condition characterized by a large number of small firms, identical products, and free entry and exit, leading to price-taking behavior.

Product Differentiation

A marketing strategy that businesses use to distinguish their products from similar offerings on the market.

Purely Competitive

Description of a market structure where there are many buyers and sellers, products are homogeneous, and there are no barriers to entering or exiting the market.

Price Strategies

Various approaches businesses use to set prices for their products or services with the aim of maximizing profitability and market share.