Under What Sorts of Circumstances Are Horizontal Mergers And/or Acquisitions

question 80

Essay

Under what sorts of circumstances are horizontal mergers and/or acquisitions of other companies a better solution than entering into partnerships or alliances with these companies? How do mergers and/or acquisitions contribute to enhancing a company's position?

---

Definitions:

Perpetual Inventory System

An inventory management system that keeps continuous, real-time records of goods as they are received and sold.

FIFO

First-In, First-Out method of inventory valuation where older stock is sold first.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, not yet sold.

Inventory Valuation

The process of determining the value of a company's inventory, taking into account costs of acquiring, producing, and storing the inventory.