The Acquisition of a Firm in the Same Industry as the Bidder

question 173

Multiple Choice

The acquisition of a firm in the same industry as the bidder is called a:

• A) Conglomerate acquisition.
• B) Forward acquisition.
• C) Backward acquisition.
• D) Horizontal acquisition.
• E) Vertical acquisition.

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Definitions:

Inventory Valuation Method

A system or approach used to assess the monetary value of inventory on hand at the end of an accounting period, affecting cost of goods sold and net income.

Tax Advantage

A financial benefit given by government regulations that reduces taxes for businesses and individuals.

Inventory Items

Goods or materials that a business holds for the purpose of sale or production in the normal course of operation.

Estimating Value of Inventory

The process of calculating the worth of unsold goods at the end of an accounting period using methods such as FIFO or LIFO.