Big Lite Inc.purchases Canton Bulbs,its direct competitor,by buying most of its stock.In this scenario,Big Lite Inc.is involved in a(n) _____.

A) conglomerate merger
B) acquisition
C) vertical merger
D) leveraged buyout
E) franchise

Question

Suyash Goenka · Accepted Answer

Final Answer : B, Explanation :  An acquisition occurs when one company purchases most or all of another company's shares to gain control of that company. In this scenario, Big Lite Inc. is buying most of the stock of Canton Bulbs, its direct competitor, which is a classic example of an acquisition.

Big Lite Inc.purchases Canton Bulbs,its direct competitor,by buying most of its stock.In this scenario,Big Lite Inc.is involved in a(n) _____.

A) conglomerate merger
B) acquisition
C) vertical merger
D) leveraged buyout
E) franchise

Definitions

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Learning Objectives

Related questions

Big Lite Inc.purchases Canton Bulbs,its direct competitor,by buying most of its stock.In this scenario,Big Lite Inc.is involved in a(n) _____.A) conglomerate mergerB) acquisitionC) vertical mergerD) leveraged buyoutE) franchise

Definitions

Learning Objectives

Learning Objectives

Related questions

Big Lite Inc.purchases Canton Bulbs,its direct competitor,by buying most of its stock.In this scenario,Big Lite Inc.is involved in a(n) _____.

A) conglomerate merger
B) acquisition
C) vertical merger
D) leveraged buyout
E) franchise