Which of the following is an example of an acquisition? A) Antarctic

QUESTION

Which of the following is an example of an acquisition?

A) Antarctic Ice Company sold ice in large quantities to hotels, restaurants, and conference centers in the southeastern United States. Penguin Ice did the same thing in the midwest. When Penguin Ice wanted to expand, it bought out Antarctic Ice Company and changed the logo on all the trucks to its own name.
B) Bea’s Baked Beans was purchased by Prince’s Pork Company. They combined their product lines and changed the company name to P and B’s Pork and Beans.
C) A caffeine-free tea manufacturer purchased a caffeine-free coffee maker, changed the name of the company to Soothing Moments, and continued to sell both products.
D) An upscale jeweller called Maxine’s wanted to expand its business to include smaller and less expensive pieces to reach a wider customer base. It purchased Gems for Any Occasion and changed its name to Just Right Gems, to reflect its new philosophy of selling “Gems Just Right for Any Occasion.”
E) Victor of Victor’s Victrolas retired, and his daughter, Victoria, took over the business. Victoria made only one change. She changed the name of the company to Victoria’s Victrolas.

ANSWER

Answer: A
Explanation: A) An acquisition occurs when one company buys another one. Penguin Ice purchased Antarctic Ice and absorbed it under the Penguin name.