Which of the Following Is NOT an Appropriate Reason for a Merger

question 24

Multiple Choice

Which of the following is NOT an appropriate reason for a merger or acquisition?

• A)Economies of scale that result from the merger.
• B)The replacement of an inefficient management team.
• C)To promote "agency problems."
• D)To reduce overlapping costs.

Recognize the role of Sales Discounts in calculating Gross Profit.

Understand the accrual accounting principle including revenue recognition and expense recording.

Calculate net sales, cost of goods sold, gross profit, and net income.

Identify the normal balance for various accounts related to inventory and revenue.

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Definitions:

Erosion Promontory

A high point of land that extends into a body of water, formed from the resistance of its materials to weathering and erosion.

Seafloor Spreading

The process by which new oceanic crust is created at mid-ocean ridges and gradually moves away from the ridge, contributing to continental drift.

Sea Level Rise

The increase in the global average level of the oceans, attributed primarily to climate change via melting ice and thermal expansion of seawater.

Karst Topography

Topography characterized by sinkholes, caves, limestone pillars, poorly organized drainage patterns, and disappearing streams; generally formed from the dissolution of limestone.