Which of the Following Describes Backward Vertical Merger

question 76

Multiple Choice

Which of the following describes backward vertical merger?

• A) a vertical merger between two or more companies that compete in the same business and geographical market
• B) a vertical merger between two companies in similar fields whose sales do not overlap
• C) a vertical merger in which a supplier acquires a customer
• D) a vertical merger in which a customer acquires a supplier

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activity, such as rent and salaries.

Traceable Fixed Expense

Fixed expenses that can be directly linked to a specific department, project, or segment within a company.

Net Operating Income

A calculation of a firm's profit, determined by deducting operational costs from the income gained through business activities.

Nearest Whole Number

A round-off method where decimal values are rounded to the closest integer.