Which of the Following Mergers Would Result from the Purchase

question 160

Multiple Choice

Which of the following mergers would result from the purchase of a computer chip company by IBM?

• A) A horizontal merger.
• B) A vertical merger.
• C) A conglomerate merger.
• D) An interlocking merger.

Understand the calculations involved in the budgeting process for sales, collections, and purchases.

Calculate cost of goods sold, including desired ending inventory levels and payment timing.

Interpret the impact of inventory management on cash flows.

Analyze accounts payable and receivable management in the context of cash flow.

---

Definitions:

Good Faith Purchasers

Good faith purchasers are individuals who buy property without knowledge of any existing claims or disputes over the item bought, typically receiving protection under the law.

Identified Goods

Goods that are designated and agreed upon at the time a contract of sale is made.

Existing

Currently in place or in existence; something that is present or alive at the current moment.

Parties Agree

A mutual understanding or concurrence between two or more parties regarding the terms of a contract or agreement.