ACCA Strategic Business Reporting (SBR) Practice Exam

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Prepare for the ACCA Strategic Business Reporting Exam. Use flashcards and multiple choice questions, with each question offering hints and explanations. Ace your exam with confidence!

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What is a change in group structure that involves acquiring additional shares?

Disposal
Step acquisition
Liquidation
Merger

The correct answer is: Step acquisition

A step acquisition refers to a situation where an entity gradually acquires additional shares in a subsidiary, which can lead to changes in the level of control that the parent company has over that subsidiary. This process allows the parent to increase its ownership stake in the subsidiary over time, potentially moving from a situation where it has significant influence (but not control) to one where it has full control. In contrast, the other terms have distinct meanings that do not align with the concept of acquiring additional shares. A disposal involves selling off part or all of a subsidiary, liquidation pertains to winding up a company’s affairs, and a merger is the combination of two companies into one entity. Therefore, step acquisition is the most appropriate term for a change in group structure that involves acquiring additional shares.