What is meant by the term 'acquisition' in a business context?

In a business context, the term 'acquisition' refers specifically to the purchase of one organization by another. This process involves one company buying a controlling interest in another company, allowing the acquiring company to consolidate resources, expand market reach, or enhance product offerings. Acquisitions are strategic decisions made with the intent to foster growth, gain competitive advantage, or enter new markets.

Understanding this concept is crucial in the corporate landscape, as acquisitions can significantly impact the structure of industries, the competitive dynamics between firms, and can lead to various financial and operational changes within the organizations involved. In contrast, the other options pertain to relatively different processes within business operations—issuing a new card, activating a card, or merging payment processors do not encapsulate the broader strategic implications and financial transactions associated with an acquisition.