How do businesses show up at the top of the search results as an ad, even if you type in the name of a competitor?

How is it if I type, "Business ABC" into google, and "Business 123" is at the very top.
I know it's an ad, but I thought a competing business wouldn't be able to show up at the very top of the page if you're typing ONLY the competitor's business name.

Is it just bidding exact match on whatever business they want to pop up against?