Which of the following is an example of an acquisition?

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The option indicating the acquisition of another firm’s shares to increase control exemplifies the concept of an acquisition effectively. In the context of corporate finance, an acquisition involves one company purchasing a majority stake or all of another company's shares with the aim of gaining control over that firm. This is typically done with the intent to integrate the operations, assets, and resources of the acquired firm into the acquiring company.

Unlike a merger, which typically signifies a coming together of two firms to create a new entity, an acquisition does not result in the formation of a new company; instead, it maintains the existing structure of both firms but places the acquired company under the control of the acquirer. This distinction is important as it emphasizes the direct control aspect - acquiring shares is a straightforward way for a company to assert control over another entity.

The other options present scenarios that do not fit the typical definition of an acquisition. A merger leads to the creation of a new entity rather than the acquisition of one firm by another. The decision for a firm to go private concerns the ownership structure but does not involve acquiring another company. Thus, the emphasis on share acquisition is what makes that choice the correct example of an acquisition.

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