What Kind of Integration Is Vertical Integration

question 62

Multiple Choice

What kind of integration is vertical integration?

• A)When the government outlaws discrimination against both short and tall people.
• B)When two firms join together in a conglomerate merger.
• C)When two firms related in the production process are owned by the same firm, as in a plywood manufacturer owning a logging company.
• D)All of the above

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Definitions:

Acquisition Method

A set of accounting procedures used for consolidating the financial statements of a parent company and its subsidiaries.

Fair Value

The estimated market value to sell an asset or the required payment to delegate a liability, during a structured transaction as of the specified valuation date.

Partial Equity Method

An accounting approach used when an investing entity has significant influence over an investee but does not consolidate its financial statements.