The Elimination of Overlapping Functions and the Meshing of Two

question 3

Multiple Choice

The elimination of overlapping functions and the meshing of two firms' strong areas or products creates the managerial incentive for mergers known as

• A) horizontal integration.
• B) vertical integration.
• C) synergy.
• D) the portfolio effect.

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Definitions:

Payroll Tax

Duties levied on employees or the companies that employ them, computed as a percentage of the remuneration the employees are given.

Wages

The fixed regular payment, typically calculated on an hourly, daily, or piecework basis, made by an employer to an employee, especially to manual or unskilled workers.

Tax Burden

The total amount of tax paid by individuals or businesses, often expressed as a percentage of income or GDP.

Inelastic

Refers to a condition where the demand for a product or service changes very little when there is a change in its price.