When Two Organizations of About Equal Size Unite to Form

question 108

Multiple Choice

When two organizations of about equal size unite to form one enterprise, which of these occurs?

• A) Hostile takeover
• B) Merger
• C) Acquisition
• D) Leveraged buyout
• E) Divestiture

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Definitions:

Reciprocity

A social norm of responding to a positive action with another positive action, fostering mutual goodwill in transactions.

Free Market

An economic system where prices for goods and services are determined by the open market and consumers, wherein the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority.

Buying Function

The process within a company or organization responsible for purchasing goods, services, or materials, often for resale or operational use.

Procurement Sources

Suppliers or vendors from which businesses obtain goods and services needed for their operations.