When Companies Operating at Different,but Related,levels of an Industry Merge,it

question 46

Multiple Choice

When companies operating at different,but related,levels of an industry merge,it is known as a(n)

• A) vertical merger.
• B) horizontal merger.
• C) acquisition.
• D) leveraged buyout.
• E) diagonal merger.

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Definitions:

Property, Plant, And Equipment

Long-term assets vital to business operations and not easily converted into cash, including land, buildings, and machinery.

Current Liabilities

Current liabilities are financial obligations a company needs to pay within one year, including accounts payable, short-term loans, and other similar debts.

Owner's Equity

The residual interest in the assets of a business after deducting its liabilities, representing the ownership's claim on the assets.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or a business cycle, whichever is longer.