A Conglomerate Merger Will

question 34

Multiple Choice

A conglomerate merger will

• A) diversify business operations and investments.
• B) allow the firm to have a less dominant position in its market.
• C) enable the firm to enjoy a higher degree of specialization.
• D) give the firm a more secure access to needed materials and components and better control over quality.

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Definitions:

Quality Cost Report

A document or tool that tracks the costs associated with ensuring the quality of products or services, including prevention, appraisal, and failure costs.

Warranty Repairs

Services offered by manufacturers or retailers to repair, replace, or rectify defects in products within a specified period after purchase, at no cost to the customer.

Internal Failure Cost

Costs associated with defects found before the product is delivered to the customer, including scrap and rework.

Quality Cost Report

A document that outlines the costs associated with preventing, detecting, and correcting defective work, categorized into prevention costs, appraisal costs, and failure costs.