________ Is When One Firm Buys Another Through a Stock

question 97

Multiple Choice

________ is when one firm buys another through a stock purchase,cash or the issuance of debt.

• A) An acquisition
• B) A merger
• C) An unrelated diversification
• D) A related diversification

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Definitions:

Profitable

A financial status where the income or revenue generated exceeds the costs or expenses, resulting in a financial gain.

Natural Monopoly

A market where a single supplier can produce output at a lower cost than multiple competitors, often due to economies of scale.

Increasing Returns

A situation where the input in a production process is increased and the output increases at a proportionally higher rate.

Price Discrimination

Charging different prices to different consumers for the same good.