Which of the Following Best Illustrates a Merger Between the Two

question 25

Multiple Choice

Which of the following best illustrates a merger between the two companies GD Inc.and VS Inc.?

• A) GD Inc. purchases VS Inc. for $80 billion despite VS Inc. being against the purchase.
• B) GD Inc. and VS Inc. join together to form a third new entity, while they also operate separately.
• C) GD Inc. outsources a few of its business activities to VS Inc. for competitive advantage.
• D) GD Inc. and VS Inc. join together to form a single new company called GDVS Inc.

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Definitions:

Entrepreneurial Ability

The human resource that combines the other economic resources of land, labor, and capital to produce new products or make innovations in the production of existing products; provided by entrepreneurs.

Laissez-Faire Capitalism

is an economic system where transactions between private parties are free from government intervention, such as regulations, privileges, tariffs, and subsidies.

Economic Functions

Concern the roles and operations of an economy, including production, distribution, and consumption of goods and services among individuals and organizations.