Question

In 2005, Skype, a company for making internet phone calls, was purchased by eBay for $2.6B. This is an example of a(n):_______

Answer 1

Answer:

d. acquisition

Explanation:

Acquisition can be defined as the process in which a company or business firm purchases all of another company so as to build on its weaknesses or strengths.

This ultimately implies that, after the acquisition of a company's shares or all of the company, the acquiring (purchasing) company gains a total control of the acquired company and as a result it is saddled with the responsibility of controlling, maintaining, managing and financing of the company.

In 2005, Skype, a company for making internet phone calls, was purchased by eBay for $2.6B. This is an example of an acquisition.