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Which of the Following Occurs When Two or More Companies

question 36

Multiple Choice

Which of the following occurs when two or more companies agree to a combination of equals, creating one new company from the two previously independent companies?


Definitions:

Cash in Hand

Refers to the amount of currency and negotiable instruments that are immediately available for business transactions or expenses, not deposited in a bank or invested.

Total Debts

The sum of all liabilities, or the total amount of money that a person or entity owes to creditors.

Inventory Turnover

A measure of how quickly a company sells and replaces its inventory over a certain period, indicating the efficiency of inventory management.

Net Income

Net income represents the total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue, indicating the actual profit made during a specified period.

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