External business expansion is done through business combinations. This can include new products or new geographic areas, by acquiring or merging with another company. As a quick rule of thumb, a business combination is when the acquirer obtains control of one or more business. And the idea of control is directly related to "control" policies and management decisions.
The way to control, is by owning more than 50% of the common stock. Other ways can include contractual agreements or arrangements, but the usual and most common way is owning the most stock.
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