Which of the following is NOT a common method of financing acquisitions?

The correct choice highlights that corporate philanthropy is not a typical method of financing acquisitions. In mergers and acquisitions, companies generally utilize cash, debt, and equity to fund deals.

Cash transactions involve using available liquid assets to pay for an acquisition outright, which is a straightforward and commonly accepted method. Debt financing refers to borrowing money to finance the purchase; this allows companies to leverage their capital structures to complete transactions. Equity financing, on the other hand, involves issuing new shares or using existing equity to pay for the acquisition, which dilutes ownership but can be an effective way to raise funds without incurring debt.

Corporate philanthropy, in contrast, is focused on charitable donations and social responsibility, rather than business transactions. This method does not provide a financial mechanism for acquiring another company, thereby distinguishing it from the other options.