A Merger Involving a Computer Manufacturer and an Electronics Retailer

question 90

Multiple Choice

A merger involving a computer manufacturer and an electronics retailer that sells its computers would be an example of a ________.

• A)vertical merger
• B)horizontal merger
• C)product extension merger
• D)conglomeration

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Definitions:

Investing Section

A part of the cash flow statement that shows cash flows from the acquisition and disposal of long-term investments and fixed assets.

Operating Section

In the context of financial reporting, this term specifies the portion of the cash flow statement that deals with cash flows from operational activities.

Cash Inflow

This is money coming into a business or entity from operations, financing, or investing activities.

Accounts Receivable

Money owed to a company by its customers from sales or services rendered on credit.