To Increase Production Capacity and Provide Consumers with Market Stability

question 108

Multiple Choice

To increase production capacity and provide consumers with market stability, Exxon and Mobil created ExxonMobil. What type of merger is this?

• A) a horizontal merger
• B) a limited liability merger
• C) a vertical merger
• D) a conglomerate merger

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Definitions:

Par Value

Par value, also known as nominal value, is the legally documented worth of a security's share, such as stocks or bonds, at the time of its issuance.

Stockholders

Individuals or entities that own shares in a corporation, providing them ownership interest.

Prior Period Adjustments

Adjustments made to the financial statements to correct errors or omissions in the financials of previous reporting periods.

Unacceptable Accounting Practices

Methods or practices that are not in accordance with generally accepted accounting principles (GAAP) or ethical standards.