What is the relationship between Besique and Gingzing after the 2017 acquisition?

What is the relationship between Besique and Gingzing after the 2017 acquisition?

• A. Gingzing acquired Besique
• B. Besique acquired Gingzing
• C. They merged as equal partners
• D. Gingzing became a supplier

Answer: (B)

When one company buys another, the buyer takes control of the target. The resulting relationship is that the buyer becomes the parent and the acquired company becomes a subsidiary (or is integrated under the buyer’s structure). In this case, Besique completed the purchase of Gingzing in 2017, so Besique is the owner and Gingzing operates under Besique’s corporate umbrella. That’s why the statement that Besique acquired Gingzing is the accurate description. It’s not a merger of equals, it’s one company taking control of the other. It also isn’t that Gingzing simply became a supplier, which would describe a business relationship rather than ownership and control.

When one company buys another, the buyer takes control of the target. The resulting relationship is that the buyer becomes the parent and the acquired company becomes a subsidiary (or is integrated under the buyer’s structure). In this case, Besique completed the purchase of Gingzing in 2017, so Besique is the owner and Gingzing operates under Besique’s corporate umbrella. That’s why the statement that Besique acquired Gingzing is the accurate description. It’s not a merger of equals, it’s one company taking control of the other. It also isn’t that Gingzing simply became a supplier, which would describe a business relationship rather than ownership and control.