Question : Case Study 24:
JKL Ltd. is a conglomerate planning to acquire a startup in the artificial intelligence sector to enhance its technology offerings.
Question :
JKL Ltd. aims to acquire a startup in the artificial intelligence sector for technological enhancement. Which market activity is associated with this goal?
Option 1: Currency swap
Option 2: Equity share issuance
Option 3: Mergers and acquisitions
Option 4: Primary market issuance
Correct Answer: Mergers and acquisitions
Solution : The correct answer is (c) Mergers and acquisitions
Mergers and acquisitions involve the consolidation of companies or the purchase of one company by another, with the goal of achieving strategic objectives such as enhancing technological capabilities, expanding market reach, or gaining a competitive edge. In this case, JKL Ltd. is seeking to enhance its technology offerings by acquiring a startup in the artificial intelligence sector, making it a mergers and acquisitions activity.
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