A Conglomerate Merger Involves Combining Firms

question 57

Multiple Choice

A conglomerate merger involves combining firms

• A)involved in the same industry.
• B)that are based in different countries.
• C)from unrelated industries.
• D)that control various stages of the production of a particular good from raw materials to finished manufacture.

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Definitions:

MBCA

Model Business Corporation Act, a template for state corporation statutes that provides legal guidelines for corporate governance and operations.

Articles of Incorporation

Legal documents filed with the state government to legally establish a corporation.

Proper Consideration

The requirement in contract law that something of value must be exchanged between the parties to form a valid contract.

Incorporeal Property

Refers to intangible assets owned by an individual or corporation, such as intellectual property, securities, and rights to financial accounts.