What do the terms "mergers and acquisitions" refer to?

The terms "mergers and acquisitions" specifically refer to the consolidation of companies through various types of financial transactions. This can encompass a wide range of activities, including the merging of two companies into a single entity or the acquisition of one company by another. The goal of these transactions is typically to enhance synergies, expand market reach, achieve economies of scale, or increase overall competitiveness in the market.

Mergers involve the combination of two firms to form a new entity, while acquisitions refer to one company purchasing another. These processes can significantly reshape market dynamics and influence various aspects of business strategy, investment, and future growth.

The other options, while related to business practices, do not capture the specific nature of mergers and acquisitions. Purchasing raw materials from suppliers, for instance, is part of supply chain management, not the financial consolidation of companies. Negotiating prices is a function of procurement and sales, whereas analyzing competitive market strategies pertains to strategic management rather than the transactional nature of mergers and acquisitions.