A(an) ____ Occurs When One Firm Buys a Controlling, or 100

question 148

Multiple Choice

A(an) ____ occurs when one firm buys a controlling, or 100% interest, in another firm.

• A) merger
• B) acquisition
• C) spin-off
• D) restructuring

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Definitions:

Raw Materials

Fundamental substances or components used in the initial stages of the manufacturing process to produce goods.

Cash Disbursements

The payment of cash by a business for expenses, purchases, or obligations.

Sales

The total amount of revenue generated from selling goods or services over a given period.

Retained Earnings

Retained earnings represent the portion of a company's net income that is kept within the company after dividends are paid to shareholders, used for reinvestment or debt payment.