Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Enterprise growth Strategies

Question:
When a smaller company is either driven to such a condition that it has no option but to say yes to the acquisition to save its skin or the bigger company just buys off all its share, thereby establishing majority, such type of acquisition is known as __________.
Options:
Friendly acquisition
Hostile acquisition
Reverse acquisition
Backflip acquisition
Correct Answer:
Hostile acquisition
Explanation:
Hostile acquisition :Here, as the name suggests, the entire process is done by force. The smaller company is either driven to such a condition that it has no option but to say yes to the acquisition to save its skin or the bigger company just buys off all its share, thereby establishing majority and hence initiating the acquisition.