Which of the Following Is an Example of a Merger

question 56

Multiple Choice

Which of the following is an example of a merger undertaken in order to achieve gains from acquiring expertise?

• A)A car manufacturer acquires a car parts supplier.
• B)A breakfast cereal producer acquires another breakfast cereal producer and the combined firm is able to negotiate a reduced cost for the grain used in its cereal.
• C)A telecommunications firm acquires another telecommunications firm and the combined firm serves a large percentage of the market.
• D)An accounting firm acquires another accounting firm and the combined firm is able to eliminate duplication among administrative positions.
• E)A video game development firm acquires another video game development firm that specializes in designing games for a new gaming system.

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Definitions:

Financial Performance

The measure of a company's financial health and efficiency, typically assessed through indicators like revenues, profits, and return on investment.

Sam Walton

The founder of Walmart and Sam's Club, known for his innovative strategies in retail and business leadership.

Success

The achievement of set goals, objectives, or desired outcomes, often marked by favorable results or the attainment of wealth, position, honors, or the like.

Passion

Intense, driving, or overmastering feeling of enthusiasm or desire for something.