Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Enterprise growth Strategies

Question:
ABC Private Limited are the manufacturers of leather shoes, for specially-abled children upto the age of twelve years. It took over XYZ Ltd who are the manufacturers of shoes for all age groups.
Identify the type of acquisition from the aforesaid lines.
Options:
Friendly acquisition
Hostile acquisition
Reverse acquisition
Backflip acquisition
Correct Answer:
Reverse acquisition
Explanation:
: Reverse acquisition - A private company takes over a public company.