What Is a Negative Impact of a Merger or Acquisitions

question 45

Multiple Choice

What is a negative impact of a merger or acquisitions?:

• A) Approximately 50% of employees positions could be eliminated due to duplication of jobs.
• B) Employees could be distracted and underperform in their jobs.
• C) A & B
• D) Neither statement is correct.

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Definitions:

Beginning Inventory

The value of all the inventory held by a business at the start of an accounting period.

Equivalent Units

A concept in cost accounting used to express the amount of work done on incomplete units in terms of fully completed units.

Direct Labor

The cost of labor directly involved in producing goods, excluding indirect costs like maintenance.

Factory Overhead

All manufacturing costs that are not directly associated with the production of goods, including indirect labor and materials.