A __________ Joins Two Firms in the Same Industry and Allows

question 120

Multiple Choice

A __________ joins two firms in the same industry and allows them to diversify or expand their products.

• A)horizontal merger
• B)vertical merger
• C)conglomerate merger
• D)company merger

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Definitions:

Equity

The amount of ownership interest in a company, typically represented by the shares held by its shareholders.

Dividends

Payments made to shareholders out of a company's earnings, distributing a portion of the profit to investors as a return on their investment.

Net Income

The company's residual earnings post all expenditures and tax deductions from the gross revenue.

External Transaction

A financial or non-financial exchange between the business and an external party, impacting the financial statements.