Modern Screen Entertainment,Inc

question 123

Multiple Choice

Modern Screen Entertainment,Inc. ,recently bought Star Power Pictures,Inc. ,for an undisclosed amount of money.It now owns all of Star Power Picture's properties and obligations.This is an example of an) :

• A)Merger.
• B)Combination.
• C)Expropriation.
• D)Acquisition.

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Definitions:

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces.

Product Demand Curves

Graphical representations showing the relationship between the price of a product and the quantity of the product demanded.

Normal Profit

The minimum profit necessary for a company to remain competitive in the market; it occurs when total revenue equals total costs.

Normal Profit

The profit level that allows a business to remain competitive in the market, covering its opportunity costs.