What does 'acquisition' refer to in a business context?

In a business context, 'acquisition' specifically refers to the merger or purchase of one organization by another. This process involves one company buying the majority or all of the shares of another company to gain control over it and its assets. Acquisitions are strategic moves businesses make to enhance growth, expand market reach, or increase operational capabilities.

Through an acquisition, the acquiring company can integrate the target company's resources, customer base, and operations, leading to potential synergies and increased competitiveness. This process can significantly alter the structure of the purchased entity and can have broad implications for stakeholders, including employees, customers, and investors.

The other options represent different business scenarios that do not align with the definition of acquisition. Selling assets relates to asset liquidation, dissolution pertains to closing down a business, and forming a joint venture involves collaboration between companies rather than a takeover. Therefore, the concept of acquisition is specifically focused on one entity absorbing another through purchase or merger.