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

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

• A. Target company
• B. Acquiring organization
• C. Merging entity
• D. Parent company

Answer: (B)

The acquiring organization is the party that purchases another business. This term specifically identifies the buyer in an acquisition, the company that takes ownership through the purchase. The target company is the entity being bought. A merging entity describes a situation where two companies combine, often forming a new entity, rather than a straightforward purchase. A parent company is the entity that owns controlling interests in other companies (subsidiaries), which can result from acquisitions but isn’t the term that denotes the purchaser itself.

The acquiring organization is the party that purchases another business. This term specifically identifies the buyer in an acquisition, the company that takes ownership through the purchase. The target company is the entity being bought. A merging entity describes a situation where two companies combine, often forming a new entity, rather than a straightforward purchase. A parent company is the entity that owns controlling interests in other companies (subsidiaries), which can result from acquisitions but isn’t the term that denotes the purchaser itself.