How Does Horizontal Integration Within an Industry Affect the Surviving

question 84

Multiple Choice

How does horizontal integration within an industry affect the surviving firms?

• A) by increasing the threat the surviving firms will face from new entrants
• B) by strengthening the rivalry among existing firms
• C) by requiring the surviving firms to shift their focus from non-price to price competition
• D) by strengthening the bargaining power of the surviving firms vis-à-vis suppliers and buyers

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Payroll Taxes Payable

Liabilities owed to tax authorities for employee taxes withheld and employer payroll taxes; to be paid within a specified period.

FUTA Payable

A liability account reflecting the federal unemployment tax due to the government by employers.

Wages and Salaries Expense

The cost incurred by a business to compensate its employees for their work, typically noted in the income statement.

Payroll Tax Expense

Total taxes, both employer and employee portions, associated with wages and salaries, including federal, state, and other payroll taxes.