A Merger of Several Firms Operating in Different Industries-For Example

question 110

Multiple Choice

A merger of several firms operating in different industries-for example, a trucking company, a fast-food chain, and a brokerage house-is called

• A) an integrated merger.
• B) a conglomerate merger.
• C) a vertical merger.
• D) a horizontal merger.

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Definitions:

Revenue Variance

The difference between the actual revenue earned and the expected revenue according to budget.

Net Operating Income

The profit derived from a company's regular business operations, excluding deductions of taxes and interest expenses.

Revenue And Spending Variances

The differences between the actual and budgeted amounts of revenue and expenses.

Flexible Budget

A financial plan that adjusts or varies with changes in volume or activity.