Which of the Following Statements Is True About Direct Material

question 1

Multiple Choice

Which of the following statements is true about direct material purchases?

• A)Their frequency of purchasing transactions is relatively low.
• B)Their purchasing predictability is relatively low.
• C)Their numbers of stakeholders are large.
• D)Their buyer has less power and control.

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Definitions:

Horizontal Acquisition

The process of a company acquiring another company in the same industry to increase its market share.

Hostile Takeover

An acquisition attempt by a company or individual against the wishes of the target company's management and board of directors.

Amalgamation

The merger or consolidation of two or more companies into a new entity, combining their assets, liabilities, and operations.

Consolidation

A merger in which a new firm is created and both the acquired and acquiring firm cease to exist.