What typically describes a takeover or acquisition?

A takeover or acquisition typically involves a larger business buying out a smaller one. This process allows the larger organization to consolidate resources, expand market reach, and potentially gain competitive advantages. In this scenario, the acquiring company usually assumes control over the smaller business's assets, operations, and management.

The focus on a larger company purchasing a smaller one is integral to understanding how acquisitions work in the corporate landscape. It often leads to a restructuring of the smaller company to align with the larger company’s strategies and operations. This contrasts with mergers, which involve both companies colluding to create a new entity, emphasizing collaboration rather than outright purchase.

The other options present scenarios that do not accurately depict the nature of a takeover or acquisition. Merging to form a partnership or each business retaining its independence does not illustrate the essence of a takeover, where control and direction shift to the larger entity. Additionally, employee retention guarantees are not typically inherent to acquisitions; they can vary based on the circumstances and strategic goals of the acquiring company.