What is the main goal of an acquisition?

Study for the UofT MGT100 Fundamentals of Management Exam. Practice with quizzes and detailed study materials to excel. Prepare with clear explanations and valuable tips to ace your exam!

The main goal of an acquisition is to purchase another company. Acquisitions are strategic moves made by organizations to gain control over another business, which often provides immediate access to resources, markets, technologies, or customer bases that the acquiring company may not possess. This method allows for the enhancement of the company's capabilities, increasing market share, or achieving economies of scale.

While forming a new company or combining resources for a project can be related to growth strategies, they do not specifically encapsulate the essence of an acquisition. Similarly, expanding into new markets can be a result of an acquisition, but the acquisition itself is fundamentally about the purchase and integration of another company rather than the broader goal of market expansion alone. Therefore, the correct choice clearly defines the primary action taken in an acquisition strategy.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy