Which statement is true about the relationship between acquisitions and mergers?

The relationship between acquisitions and mergers is characterized by their frequent occurrence together in business transactions, which is why the selection is accurate. Mergers and acquisitions are both strategies that companies use for growth, diversification, and enhancing competitive advantage.

In many cases, a company may decide to merge with another company to create a new, unified entity or acquire another company to gain its assets or market share. While mergers typically involve a mutual agreement between the companies involved, acquisitions can be either friendly or hostile. Thus, they often complement each other in the context of corporate strategy and can be part of the same overarching plan for growth or consolidation.

The other statements do not reflect the nuances of these business activities. Companies do not operate in isolation; hence, the idea that they are completely unrelated concepts is misleading. Additionally, while mergers typically require shareholder approval due to the implications on ownership and control, acquisitions can be structured in various ways that might not require such extensive approval processes depending on the nature of the acquisition and the agreements in place. Lastly, not all acquisitions are hostile, as many are conducted with the consent of the target company's management.