MacTech Corporation Is a Subsidiary of Clickon Corporation,which Owns 90

question 71

Multiple Choice

MacTech Corporation is a subsidiary of Clickon Corporation,which owns 90 percent of MacTech's shares.The management of Clickon is not happy with the way MacTech is being managed.They believe that MacTech is losing out on a huge chunk of potential business to rivals due to mismanagement.As a solution,the board of directors of Clickon approves a merger between Clickon and MacTech and they send a copy of the merger plan to MacTech's shareholders.This form of merger is called a(n) :

• A)semi-merger.
• B)short-form merger.
• C)incomplete merger.
• D)half-merger.

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Definitions:

Chain of Command

A system in an organization where authority and responsibility are structured in a hierarchy, establishing clear paths for decision-making and command.

Horizontal Specialization

Is a division of labor through the formation of work units or groups within an organization.

Hierarchical Division

The organization of entities or levels within a system that ranks one above the other based on authority or status.

Staff Units

Specialized groups within an organization that provide support and expertise but do not directly contribute to its main objectives.