One Method of Expanding a Business Is the Purchase of an Entire

question 20

Multiple Choice

One method of expanding a business is the purchase of an entire company or part of it so that the entity is completely absorbed and no longer exists as a separate company.This is called:

• A) a joint venture.
• B) an acquisition.
• C) a subsidiary.
• D) a takeover.

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Definitions:

Contract or Statute

Legal documents that establish rights and obligations; a contract is an agreement between parties, while a statute is a law enacted by a legislative body.

Vicarious Liability

A legal principle that holds an entity or individual responsible for the actions of another party, typically in an employer-employee relationship.

Personal Fault

An individual's responsibility or blame for a mistake, accident, or wrongdoing, often influencing legal judgments or penalties.

Torts Committed

Acts or omissions leading to injury or harm to someone else, resulting in legal liability for the person responsible.