The Purchase of a Company That Is in the Same

question 218

Multiple Choice

The purchase of a company that is in the same industry and involved in the same activity is called a

• A) controlling acquisition.
• B) horizontal acquisition.
• C) parent acquisition.
• D) vertical acquisition.

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Definitions:

Percentage Cost

The cost expressed as a percentage of the purchase price or other value, often used to analyze and compare costs or expenses.

Default Rate

This is the rate at which borrowers fail to make payments on their debts, often expressed as a percentage.

Increase in Sales

A rise in the volume or value of products or services sold by a business, indicating potential growth or market expansion.

Independent Demand

A type of demand that is not influenced by the demand for other products but rather by market conditions or customer needs.