Acquisition Is a Bad Strategy When an Industry Is Consolidating

question 75

True/False

Acquisition is a bad strategy when an industry is consolidating.

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Definitions:

Cash Discount

A reduced price offered by a seller for goods or services if the buyer pays in cash, or within a specified time period, encouraging early payment.

Receivables

Money that is owed to a company by its customers for goods or services provided on credit, represented as assets on the balance sheet.

Carrying Cost of Inventory

Expenses related to holding and maintaining unsold inventory, including storage, insurance, taxes, and opportunity costs.

Storage Expenses

are costs associated with storing inventory or goods, including warehousing fees, handling charges, and costs related to inventory maintenance.