What does the term acquisition refer to in business?

The term acquisition in business specifically refers to the process of taking ownership of another business. This typically involves one company purchasing another company’s assets or shares to gain control over it. Acquisitions can happen for various strategic reasons, such as expanding market reach, acquiring new technology, gaining competitive advantages, or increasing operational efficiencies.

In the context of business strategies, acquisitions often lead to increased resources and capabilities, enabling the purchasing company to enhance its market position and drive growth. This process is distinct from other business actions like investments in stocks, which involve buying shares without gaining control over a company, or combining product lines, which focuses on product development rather than ownership. Similarly, the elimination of business competition refers more to strategic maneuvers in the marketplace rather than the concrete act of acquiring ownership. Therefore, option B is the most accurate definition of acquisition in a business context.