A Conglomerate Takeover Occurs When

question 48

Multiple Choice

A conglomerate takeover occurs when:

• A) companies from different business areas merge.
• B) both parties are similar in size.
• C) the merged entity is expected to have large additional value.
• D) the management team of the target company is combined with that of the takeover company.

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Definitions:

Elasticity of Resource Demand

The responsiveness of the quantity demanded of a resource to a change in its price.

Unit Wages

The amount of compensation received by workers per unit of time or per unit of output produced.

Employed Workers

This term refers to individuals who are currently working for pay or profit, whether on a full-time or part-time basis.

Coefficient of Elasticity

A measure of how much the quantity demanded of a good responds to a change in price, income levels, or other variables.