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:

Stockholders' Equity

The equity held by shareholders in a company, calculated as the company's assets minus its outstanding debts, representing their residual ownership.

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding deductions of taxes and interest expenses.

Turnover

Turnover refers to the rate at which employees leave a workforce and are replaced, or the total volume of sales made by a company during a particular period.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, expressed as a percentage of the return on the investment relative to its cost.