Skip to content

CSEET · Business Communication · Common Business Terminologies

Which term describes the situation where one company acquires enough shares of another company to take control of its management, often against the wishes of the target's board?

This is called a hostile takeover. The acquirer buys enough shares of the target company to gain control of its management even though the target's board opposes it. Consensual combinations and joint ventures involve agreement, so they do not fit.

  1. AHostile takeoverCorrect
  2. BAmalgamation by consent
  3. CJoint venture
  4. DFranchising

Explanation

A hostile takeover is an acquisition attempt opposed by the target company's management or board. Amalgamation by consent and joint ventures involve agreement between parties. Franchising is licensing a business model, not acquiring control.

Did you get it right without looking?

One question tells you little. A timed set on Common Business Terminologies shows your real accuracy, how long you take and where you lose marks.

Practise Common Business TerminologiesFree diagnostic mock

More Common Business Terminologies questions