When Two Companies in Entirely Different Industries Combine,it Is Known

question 42

Multiple Choice

When two companies in entirely different industries combine,it is known as a ________.

• A) vertical merger
• B) horizontal merger
• C) product extension merger
• D) conglomeration
• E) market extension merger

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Definitions:

Revenue Accounts

Accounts that track the income a business receives from its various activities, such as sales of products or services.

Loss Accounts

Accounts used to record the loss in value of assets or to represent expenses that reduce net income.

Revenue Recognition

The accounting principle that determines the specific conditions under which revenue is recognized or accounted for.

Inventory Purchased

Goods bought by a company for the purpose of resale in the ordinary course of business.