One of the Primary Motives of Merger Activity Is That

question 55

True/False

One of the primary motives of merger activity is that acquiring companies find it less expensive to buy assets than to build.

Comprehend the effect of debits and credits on the balance of different account types.

Understand the role and structure of accounts in financial accounting.

Grasp the purpose and content of a chart of accounts.

Learn how to classify accounts in the ledger and understand their order of presentation in financial statements.

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Definitions:

Economies Of Scale

Situation in which output can be doubled for less than a doubling of cost.

Increasing Returns

A situation where the addition of more units of input results in a more-than-proportional increase in output.

Competitive Market

A market structure characterized by many buyers and sellers, such that no single party can dictate the market price.

Long-Run Cost

The total cost of production when all inputs, including both fixed and variable costs, are considered fully adjustable.