The Cat Box Acquired the Dog House

question 88

Multiple Choice

The Cat Box acquired The Dog House. As part of this transaction, both firms ceased to exist in their prior form and combined to create an all-new entity, Animal World. Which one of the following terms best describes this transaction?

• A) Divestiture
• B) Consolidation
• C) Tender offer
• D) Spinoff
• E) Conglomeration

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Definitions:

Physical Capital

The tangible assets such as buildings, machinery, and equipment used in the production of goods and services.

Human Capital

The collective skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value to an organization or society.

Capital Per Employee

A measure of how much capital investment is allocated per employee, indicating the level of investment in tools, technology, and equipment to enhance productivity.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or the community.