Question

In a(n) ____________, the buyer purchases enough shares in a corporation to gain voting control of that corporation.

1) asset acquisition
2) stock acquisition
3) consolidation
4) joint venture

Answer 1

In a stock acquisition, a buyer gains control of a corporation by purchasing a sufficient amount of its shares. This is different from asset acquisitions, consolidations, or joint ventures, and is closely monitored under antitrust laws.

Step-by-step explanation:

In a stock acquisition, the buyer purchases enough shares in a corporation to gain voting control of that corporation. An asset acquisition involves buying the company's assets directly, rather than its stock. A consolidation is when two companies combine to form a new entity, and a joint venture involves two or more parties who retain their separate identities while working together on a project.

Acquisitions and mergers are significant in the business world as they can affect market competition, which is why antitrust laws exist to prevent the reduction of competition that can arise from such merger and acquisition activities.