One Firm Buying Another Is Called A(n)

question 56

Multiple Choice

One firm buying another is called a(n)

• A) Merger.
• B) Acquisition.
• C) Divestiture.
• D) Prospective.
• E) Defender.

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Definitions:

Paid Note Payable

The satisfaction or settlement of a debt instrument or promissory note through payment by the debtor to the lender according to the agreed terms.

Common Stock

Equity ownership in a corporation, with voting rights and the potential to receive dividends.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Stock Dividend

The payment of additional shares to shareholders instead of cash, usually at a fixed rate, often used by companies to conserve cash.