An acquisition occurs when one company takes over controlling interest in another company. This strategy is often employed to achieve specific business objectives such as expanding market share, gaining new technologies, or reducing competition.
A corporate acquisition involves one company purchasing most or all of another company's shares to gain control of that company, which can lead to significant structural and operational changes.
Economies of scale refer to the cost advantages that a business obtains due to expansion, which result in the reduction of per-unit costs as the scale of operation increases.
Overtrading occurs when a business expands its operations too rapidly, straining its financial resources and potentially causing liquidity problems.
