Mr Amitanshu, an MBA from IIM Ahmedabad, was doing very well. He met with an accident in which he lost his legs. Treatment was long and due to long absence, he lost his job. Since he was the only earning member in the family, financial problems started. Soon he came up with a solution to the problem. He decided to start a coaching centre named "Learners Paradise" for UPSC aspirants. Since he used to regularly read the newspapers, watch TV during his illness, he had good reasons to spot this opportunity. He also carried out a market survey to findout the feasibility of this idea. He realised students had to travel far to get coaching. Thus, after deciding on the locations after doing some market research, he started working on other details which involved analytical planning, resource organisation, implementation and commercial applications. Since he was an IIT pass out, he had a fair idea about various aspects related to planning a business. He took some legal and financial advice from experts. He decided to involve two of his friends who were his batchmates in this project on profit sharing basis.

Once Amitanshu established his centre well, he decided to expand his operations. He came to know about a small centre on the verge of closure, due to lack of efficient staff. He decided to take over that centre identify the form of expansion.

Acquisition

The correct answer is option (2) - Acquisition