A Merger Involving Firms That Are Not Competitors,customers,or Suppliers Is

question 62

Multiple Choice

A merger involving firms that are not competitors,customers,or suppliers is termed a:

• A) tying arrangement.
• B) vertical merger.
• C) conglomerate merger.
• D) horizontal merger.

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Definitions:

Promissory Note

A financial document in which one party promises in writing to pay a determinate sum of money to another, either at a fixed or determinable future time or on demand.

Interest

The cost of borrowing money, typically expressed as an annual percentage of the principal amount.

Allowance Method

An accounting technique used to account for accounts receivable that a company does not expect to collect fully, thereby creating an allowance for doubtful accounts.

Perpetual Inventory System

An inventory accounting method that instantly records inventory sales or purchases using computerized point-of-sale systems and enterprise asset management software.