Which of the Following Terms Refers to One Company's Acquisition

question 47

Multiple Choice

Which of the following terms refers to one company's acquisition of another company's assets or stock in such a way that the second company is absorbed by the first?

• A) diversification
• B) penetration
• C) merger
• D) collusion

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Definitions:

Incremental Manufacturing Cost

The additional costs incurred when manufacturing one additional unit of a product, essential for decision-making in production and pricing.

Units Produced

The total number of complete units that are manufactured during a specific period.

Indirect Manufacturing Cost

Costs related to production that cannot be directly attributed to specific products, such as maintenance, utilities, and supervision.

Units Produced

The total number of complete products that are manufactured or processed by a company within a specific period.