The Form of Business Combination Seldom Used Today Because of the Advantages

question 126

Multiple Choice

The form of business combination seldom used today because of the advantages of other forms is the:

• A) merger.
• B) consolidation.
• C) purchase of assets.
• D) share exchange.
• E) hostile takeover.

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Definitions:

Working Capital Management

The management of a company's short-term assets and liabilities to ensure it has sufficient funds to continue its operations and meet short-term financial obligations.

Payables

Amounts owed by a company to suppliers or creditors for goods and services received but not yet paid for.

Marketable Securities

Liquid financial instruments that can be quickly converted into cash at a reasonable price.

Companies

Entities engaged in commercial, industrial, or professional activities with the goal of generating profits.