A Merger Between One Firm and Another Firm That Is

question 39

Multiple Choice

A merger between one firm and another firm that is its supplier is known as a

• A) horizontal merger.
• B) vertical merger.
• C) conglomerate merger.
• D) parallel merger.

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Definitions:

Notes

Short-term financial instruments, typically in the form of a debt or loan, that require repayment of the principal and interest by the issuer.

Drafts

Preliminary versions of documents, or negotiable instruments drawn by one party (drawer) ordering another party (drawee) to pay a specified sum to a third party.

Indorsed in Blank

A signature on a negotiable instrument like a check, making it payable to whoever holds the instrument, without naming a specific endorsee.

Holder in Due Course

A party that has acquired a negotiable instrument in good faith and for value, granting them certain protections and rights under the law.