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Internal Control Consists of Six Components

question 26

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Internal control consists of six components.


Definitions:

Horizontal Acquisition

The process of a company acquiring another company in the same industry at the same level of the supply chain to enhance its market share.

Conglomerate Acquisition

A conglomerate acquisition occurs when a company buys another company in a completely unrelated business sector, aiming for diversification of business interests.

Poison Pill

A defensive strategy used by companies to prevent or discourage hostile takeovers by making the company less attractive to the acquirer.

Golden Parachute

Substantial benefits given to top executives if the company is taken over by another firm, serving as a deterrent for unwanted takeovers.

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