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identify the type of acquisition in which the purc
Question:
Identify the type of acquisition in which the purchasing company becomes a subsidiary of the purchased company.
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In reverse acquisition, the purchasing company becomes a subsidiary of the purchased company.
CUET (UG) - 2023
CUET (UG)
Updated On:
Feb 11, 2026
Back flip acquisition
Reverse acquisition
Hostile acquisition
Friendly acquisition
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The Correct Option is
B
Solution and Explanation
A reverse acquisition occurs when a smaller company acquires a larger one, with the result being that the purchasing company becomes a subsidiary of the acquired company.
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