According to the Textbook, ________ Is When a Company Grows

question 48

Multiple Choice

According to the textbook, ________ is when a company grows by merging with or acquiring firms in different, but related, industries.

• A)forward vertical integration
• B)backward vertical integration
• C)horizontal integration
• D)related diversification
• E)unrelated diversification

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Definitions:

Proportional Tax

A tax system where the rate remains constant regardless of the amount on which the tax is imposed.

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to tax, causing taxpayers to pay the same percentage of their income irrespective of its size.

Deductions

Expenses subtracted from gross income to determine the taxable income.

Excise Tax

A tax levied on certain goods, services, and activities, such as tobacco, alcohol, and fuel, usually to discourage their consumption and raise government revenue.