Your School Decides to Expand and Open a New Campus

question 57

Multiple Choice

Your school decides to expand and open a new campus in another state. Rather than acquiring land and building new buildings, the school board decides to merge with an existing school that has similar programs in the other state. The school you're merging with is a small commuter school with no dorms. 98% of its students are not only instate, but from the city the school is located in. This merger would be best described as a:

• A) vertical merger.
• B) geographic market extension merger.
• C) product market extension merger.
• D) horizontal extension merger.
• E) conglomerate merger.

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Definitions:

Economic Role

The function or position held by an entity or individual within an economic system, influencing the allocation of resources and creation of goods and services.

Government

The system or group of people governing an organized community, often a state, and managing its affairs and resources.

Taxable Income

Taxable income is the portion of an individual's or corporation's income used to determine how much tax will be owed to the government.

Tax Revenues

The money obtained by governments as a result of taxation.