When One Company at One Level of the Manufacturing-Distribution System

question 57

Multiple Choice

When one company at one level of the manufacturing-distribution system acquires a company at another level of the system,the merger is called a ______ merger.

• A) Horizontal
• B) Vertical
• C) Conglomerate
• D) Joining
• E) Predatory

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Definitions:

Sales Mix

The combination of different products or services that a company sells, typically analyzed to understand their relative contributions to overall sales.

Operating Loss

A situation where a company's operating expenses exceed its gross profits, indicating a negative performance.

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent, salaries, and insurance.

Book Value

The net value of an asset or company calculated as total assets minus intangible assets and liabilities.