Which of the following best defines mergers and acquisitions?

Mergers and acquisitions refer specifically to the consolidation of companies through financial transactions. This process involves either merging two companies into one or one company acquiring another, which often results in a significant change in ownership and can lead to various strategic advantages such as increased market share, operational efficiencies, and enhanced competitive positioning.

The focus on financial transactions highlights the nature of these activities, where assets, liabilities, and ownership interests are exchanged, making option B the most accurate definition. It captures the essence of how companies come together or one takes over another, which is integral to understanding corporate strategy and growth.

In contrast, the other options describe different business activities that do not necessarily relate to mergers and acquisitions. For instance, purchasing technology pertains to operational improvements rather than company consolidation, hiring employees focuses on workforce expansion and does not involve corporate structure changes, and expanding market share through sales growth relates to revenue enhancement rather than the structural changes that mergers and acquisitions entail.