A Merger Between Firms at Different Stages of Production of a Good

question 175

Multiple Choice

A merger between firms at different stages of production of a good

• A)is a vertical merger.
• B)was made illegal by the Sherman Act.
• C)was made legal by the Clayton Act.
• D)is a horizontal merger.

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Definitions:

FICA-OASDI

A U.S. payroll tax that funds the Social Security and Medicare programs, officially known as the Federal Insurance Contributions Act - Old Age, Survivors, and Disability Insurance.

FICA-Medicare

A federal tax deducted from employees' paychecks and matched by employers to fund the Medicare program.

SUTA Payable

A liability account showing the amounts due to the state for state unemployment taxes, payable by employers based on established rates.

Journal Entry

The method by which transactions are recorded in the company's ledger, noting debits and credits.