ABC and XYZ,two Organizations in the Same Industry,have Come Together

question 3

Multiple Choice

ABC and XYZ,two organizations in the same industry,have come together to pursue areas of mutual interest.This refers to a(n) :

• A) unethical venture.
• B) acquisition.
• C) corporate takeover.
• D) strategic alliance.

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Definitions:

Contra Liability Account

An account on a company's balance sheet that decreases the balance of a liability account to reflect its net value.

Discount

A discount refers to a reduction from the usual cost of an item or service, offered to incentivize purchase or payment.

Bonds Payable

A long-term liability account that records the amounts owed by an entity to bondholders, to be repaid at a future date.

Installment Note

A debt that requires the borrower to make equal periodic payments to the lender for the term of the note.