What term refers to the business or organization that is buying another business?

What term refers to the business or organization that is buying another business?

• A. Acquiring organization
• B. Target company
• C. Merger partner
• D. Subsidiary

Answer: (A)

In this scenario, the acquiring organization is the business that buys another company. This term frames the buyer’s role in the transaction—it's the entity that provides the capital and takes ownership and control of the target. You’ll also hear the synonyms acquirer or buyer used in practice. The company being bought is the target, which is the opposite side of the deal. A merger partner refers to the other company involved in a merger, where two firms combine, not simply the buyer. A subsidiary is a company controlled by another (the parent), and while the acquired firm may become a subsidiary after the deal, it isn’t the buyer itself.

In this scenario, the acquiring organization is the business that buys another company. This term frames the buyer’s role in the transaction—it's the entity that provides the capital and takes ownership and control of the target. You’ll also hear the synonyms acquirer or buyer used in practice. The company being bought is the target, which is the opposite side of the deal. A merger partner refers to the other company involved in a merger, where two firms combine, not simply the buyer. A subsidiary is a company controlled by another (the parent), and while the acquired firm may become a subsidiary after the deal, it isn’t the buyer itself.