Recently There Have Been Several Mergers Involving Big Four Accounting

question 135

Multiple Choice

Recently there have been several mergers involving Big Four accounting firms. One such merger involved the firms of Arthur Young and Ernst & Whinney, who combined to form Ernst & Young. This is an example of a

• A) joint venture.
• B) horizontal merger.
• C) vertical merger.
• D) syndicate.
• E) conglomerate merger.

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Definitions:

Employer/Employee Context

The environment and circumstances surrounding the relationship between an employer and their employees, which includes rights, obligations, and expectations.

Restrict

To limit or control the size, amount, or range of something through regulations or conditions.

Recognizance

An obligation in which a party acknowledges in court that he or she will perform some specified act and/or pay a price on failure to do so.

Formal Contract

A legally binding agreement that requires a specific form, such as being in writing, to be valid.