An Acquisition Occurs When ______

question 172

Multiple Choice

An acquisition occurs when ______.

• A) one corporation owns 8 percent of the stock of another corporation
• B) one company purchases the property and assumes the obligations of another company
• C) two or more firms combine to form a single company
• D) owners of small companies band together to operate their businesses collectively

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Definitions:

Alter Behavior

The process of changing or modifying actions, habits, or conduct.

Production Subsidies

Financial support given by the government to producers or manufacturers to help reduce the cost of producing goods or services.

External Costs

These are costs of a transaction that affect someone who did not choose to incur that cost, often not reflected in the market prices.

Adverse Selection

A situation in which one party in a transaction has more or better information than the other, often leading to an imbalance and inefficient market outcomes.