Transaction Files

question 21

Multiple Choice

Transaction files:

• A) are large files, containing all main information about an entity.
• B) are used to update master files and produce reports.
• C) cannot contain several record types.
• D) are always stored using indexed-sequential organization.

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Definitions:

Greenmail

To avoid an unfriendly acquisition, a firm may buy shares owned by a potential acquirer at a price above the market price of the stock. The above-market payment is greenmail.

Horizontal Merger

A business consolidation that occurs between firms operating in the same industry, often aiming to increase market share.

Conglomerate Merger

A union between firms that are involved in totally unrelated business activities.

Vertical Merger

A merger between companies in the same industry but at different stages of the production process, aiming at creating efficiencies or reducing costs.