The Mars Acquisition of the Wrigley Assets Was Part of Its

question 112

Multiple Choice

The Mars acquisition of the Wrigley assets was part of its related constrained diversification and added market share to the Mars/Wrigley integrated firm.It allowed Mars to gain __________ because it could sell its products above the market level or reduce its costs below the market level.

• A) multipoint competition
• B) virtual integration
• C) market power
• D) vertical integration

---

Definitions:

Federal Income Tax

The tax levied by the U.S. federal government on individuals and entities based on their annual income, with different rates applied to different income ranges.

Salaries Expense

The total amount paid to employees for services rendered during a specific period, recognized as an expense.

Social Security Tax

A tax that funds the Social Security program, which provides retirement benefits, disability income, and other payments to eligible individuals.

Payroll Tax Expense

The taxes that an employer incurs based on employee wages, including Social Security and Medicare taxes.