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Questions and Answers
Which of the following best describes the difference between an acquisition and a merger?
Which of the following best describes the difference between an acquisition and a merger?
- An acquisition is when one company takes over another, while a merger is when two companies agree to become one. (correct)
- An acquisition and a merger are essentially the same thing.
- An acquisition is when two companies agree to become one, while a merger is when one company takes over another.
- An acquisition is when two companies agree to become one, while a merger is when one company buys out a different company.
Why might a business choose to use the strategy of mergers and acquisitions?
Why might a business choose to use the strategy of mergers and acquisitions?
- To buy out their competition.
- To become bigger without doing the work.
- To add more products or services.
- All of the above. (correct)
What is an example of a well-known acquisition mentioned in the text?
What is an example of a well-known acquisition mentioned in the text?
- Apple's acquisition of Beats.
- Amazon's acquisition of Whole Foods.
- Facebook's acquisition of WhatsApp. (correct)
- Google's acquisition of YouTube.
Which of the following is NOT a reason why a business might choose to use the strategy of mergers and acquisitions?
Which of the following is NOT a reason why a business might choose to use the strategy of mergers and acquisitions?
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What is the main focus of this text?
What is the main focus of this text?
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