The outright purchase of one company by another is called?
Answer Details
The outright purchase of one company by another is called an "acquisition".
An acquisition is a corporate action in which one company buys most or all of another company's ownership stakes in order to take control of the acquired company's assets, liabilities, and operations. This can be accomplished by buying the majority of the company's shares, buying the company outright, or merging the two companies together.
Acquisitions can be used as a strategy to achieve growth, diversify product offerings, expand into new markets, and gain access to new customers or technologies. The acquiring company will often pay a premium price for the acquired company's shares in order to gain control of its assets and operations.
After an acquisition, the acquired company will often be integrated into the operations of the acquiring company, which may involve changes to its management, products, and operations. In some cases, the acquired company may continue to operate as a separate entity, but under the control of the acquiring company.
In summary, an acquisition is the outright purchase of one company by another, where the acquiring company takes control of the acquired company's assets, liabilities, and operations. It is often used as a strategy to achieve growth, diversify product offerings, expand into new markets, and gain access to new customers or technologies.