Final answer:
An acquisition occurs when one firm purchases another to enter into a new market, and may involve the acquired firm continuing operations under its own brand. This differs from a merger but alike promotes business growth and is subject to antitrust laws.
Step-by-step explanation:
Acquiring another company so that a firm may enter into a new market is an example of an acquisition. This business strategy is where one firm purchases another, which can allow the acquiring firm to gain new product lines, increase its efficiency, expand its operations, or even reduce competition.
While similar to a corporate merger, where two firms join to form a single entity, an acquisition often keeps the purchased firm's name and brand intact. It's essential to consider antitrust laws, which exist to promote competition by regulating or preventing mergers and acquisitions that can lead to market monopoly.
A corporate merger or an acquisition is an example of a business strategy used by a firm to enter a new market. A corporate merger occurs when two separate companies combine to form a single firm, while an acquisition refers to one company buying another.
In both cases, the goal is to expand the company's operations by gaining access to new markets, customers, or product lines.