A Horizontal Merger Involves

question 85

Multiple Choice

A horizontal merger involves

• A) the joining of two firms at different stages of the production process.
• B) the separation of management from ownership.
• C) the joining of two firms selling similar products.
• D) the exchange of debt for stock.

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Definitions:

Net Income

The net earnings of a company resulting from subtracting all costs and taxes from its overall revenue.

Shares Outstanding

The total number of a company's shares that are owned by shareholders, including both public and private entities, available in the market.

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within one year or the normal operating cycle of the business, whichever is longer.

Statement Of Financial Position

Another term for a balance sheet; it shows a company's assets, liabilities, and equity at a specific point in time.