Josie's Position Was Eliminated When the Company Moved Its Operations

question 56

True/False

Josie's position was eliminated when the company moved its operations to another state, so she started her own business. Josie is a reluctant entrepreneur.

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Definitions:

Merger

The combination of two or more companies into one, to achieve greater efficiencies and strengthen financial and operational positions.

Operating Economies

Cost advantages that enterprises obtain due to the scaling of production or the efficient allocation of resources.

Managerial Efficiency

A measure of the effectiveness with which managers utilize resources at their disposal to achieve organizational goals.

Purchase Method

An accounting technique used in mergers and acquisitions where the buyer records the assets and liabilities of the acquired company at fair market value.