If Georgia Pacific (Lumber Products)were to Acquire a National Homebuilding

question 61

Multiple Choice

If Georgia Pacific (lumber products) were to acquire a national homebuilding firm,the combination would be termed a:

• A) horizontal merger.
• B) vertical merger.
• C) conglomerate merger.
• D) spin-off by the national homebuilding firm.

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Definitions:

Safety Inventory

Extra inventory held as a buffer against demand variability and supply chain disruptions to prevent stockouts.

Cycle Inventory

The portion of inventory that companies hold to facilitate smooth production and sales operations, fluctuating based on production cycle needs.

Low-Value Product

Products that have a low price point or perceived economic value to the consumer, often resulting in slim profit margins.

High Demand

A situation where the desire and need for a product or service greatly exceeds the available supply within a market.