ABSORBED BUSINESS Meaning and
Definition
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An absorbed business refers to a company or enterprise that has been taken over or acquired by another business entity. In this scenario, the acquiring company absorbs the absorbed business into its own operations, resulting in a merger or acquisition. This process typically involves one company purchasing the majority, if not all, of the assets, liabilities, and stock of the absorbed business, thereby gaining control and ownership.
The absorbed business, also known as the target, may have been struggling financially, facing management issues, or seeking growth and expansion through collaboration with a larger, more established entity. The acquisition allows the absorbing company to incorporate the absorbed business's resources, customer base, technology, patents, or other assets into their own operations, thereby improving their market position or achieving economies of scale.
The stakeholders of the absorbed business, including its shareholders, employees, and customers, often experience changes as a result of the acquisition. Shareholders may receive compensation or equity in the acquiring company, employees may face restructuring or redundancies, and customers may experience changes in products, services, or pricing. The absorbed business may retain some degree of autonomy within the acquiring company or be fully integrated into its operations, depending on the strategic goals of the acquiring company.
Overall, an absorbed business represents the process and outcome of one company being taken over by another company, resulting in a change in ownership, control, and integration of resources.
Etymology of ABSORBED BUSINESS
The term "absorbed business" does not have a specific etymology as it is a combination of two common English words: "absorbed" and "business".
The word "absorbed" originates from the Latin word "absorbēre", which means "to swallow up" or "to take in". It came into English around the 15th century and refers to being fully engrossed or deeply involved in something.
The word "business" has a more complex etymology. It is derived from the Old English word "bisignes", which meant "anxiety" or "care". It can be traced back to the Proto-Germanic word "bisignis", which combined "bisig" meaning "careful" and "ness" indicating a state of being. Over time, the meaning of "business" expanded to refer to activities or tasks that require attention, effort, and organization.
