Which of the Following Statements Best Describes Mergers

question 66

Multiple Choice

Which of the following statements best describes mergers?

• A) The purchase of Red Lobster Restaurant initiated by Remax Realty is an example of conglomerate mergers.
• B) A merger can be blocked by either a firm's customers or suppliers, not the government.
• C) The existence of golden parachutes is a reason that the management of a target company tries to block a takeover.
• D) None of the above.

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Definitions:

Variable Cost Concept

A principle in economics that refers to costs that vary directly with the level of production or service activity.

Rate of Return

A measurement of the gain or loss on an investment over a specific period, expressed as a percentage.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and generate profit.

Bottleneck

A point of congestion in a production system that occurs when workloads arrive too quickly for the production process to handle, often leading to delays and lower production efficiency.