Final answer:
An acquisition occurs when one firm buys another, and this is the correct answer to the student's question. It differs from a horizontal merger or a joint venture and can fall under antitrust laws regulation.Thus the correct option is a.
Step-by-step explanation:
An acquisition occurs when one firm purchases the property and assets and assumes the debt obligations of another firm. In this case, the correct answer to the student's question would be an acquisition. Unlike a horizontal merger, which involves firms that produce similar products joining together, or a joint venture where two or more firms collaborate on a specific project while remaining separate entities, an acquisition specifically refers to one firm taking over another. This process is distinguished from mergers largely by the continuation of operation under the former company name of the acquired firm. Moreover, antitrust laws may play a role in reviewing such actions to ensure robust market competition.