What Type of Ownership Is Created When a Firm Buys

question 77

Multiple Choice

What type of ownership is created when a firm buys another outright?

• A) Merger
• B) Acquisition
• C) Spin-off
• D) Divestiture
• E) Institutional

---

Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories.

Market Rate

The prevailing rate at which a specific asset can be bought or sold in the marketplace, often influenced by supply and demand.

Simple Interest

Interest charged exclusively on the principal sum, or on the part of the principal that has not been paid yet.

Investment Builder

A financial tool or account that aids individuals in growing their savings through various types of investments.