A Merger of a Firm and Its Supplier Is Called

question 55

Multiple Choice

A merger of a firm and its supplier is called

• A)a vertical merger.
• B)a horizontal merger.
• C)a conglomerate merger.
• D)a direct merger.
• E)an indirect merger.

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Definitions:

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a set price, giving issuers flexibility to refinance if interest rates fall.

Contract Rate

A predefined rate agreed upon in a contract, often used in financial agreements, such as loans or leases, specifying the interest rate.

Installment Note

An installment note is a form of debt that requires the borrower to make scheduled payments (including both principal and interest) over a set period until the debt is paid off.

Bearer Bonds

Bonds not registered to any owner, allowing whoever holds the bond physically to claim the interest payments or the principal.