Which of the Following Occurs When Two Firms Combine to Create

question 142

Multiple Choice

Which of the following occurs when two firms combine to create a new company?

• A) acquisition
• B) takeover
• C) venture
• D) divestiture
• E) merger

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Definitions:

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, frequently used as an indicator of inflation.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of currency.

Inflation Rate

The percentage increase in the general price level of goods and services in an economy over a period of time, usually a year.

Market Basket

A selected set of goods and services used to track an economy's inflation or cost of living over time.