The Difference Between a Merger and an Acquisition Relates to

question 6

Multiple Choice

The difference between a merger and an acquisition relates to

• A)strategy and competitive advantage.
• B)the presence of available resources and competitive capabilities.
• C)whether the end result is related to horizontal or vertical scope.
• D)creating a more cost-efficient operation out of the combined companies.
• E)the details of ownership, management control, and the financial arrangements.

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Definitions:

Accrued Interest

Interest that has been incurred but not yet paid.

Recourse

The legal right to demand compensation or payment from the party with primary liability in the event of default.

Contingent Liability

A potential financial obligation that may arise in the future based on the outcome of a specific event.

GAAP

Generally Accepted Accounting Principles represent a unified collection of accounting rules, standards, and processes that organizations in the United States are required to adhere to when preparing their financial reports.