When One Firm Buys Another Firm and the Firm That

question 4

Multiple Choice

When one firm buys another firm and the firm that was bought is absorbed by the purchasing firm,a(n) _______________________ occurs.

• A)merger
• B)acquisition
• C)but-out
• D)stock swap

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Definitions:

Price Increase

A rise in the cost of goods or services.

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a given price level.

Relatively Inelastic

A situation where the demand for a product does not change significantly with a change in the price.

GSU

An acronym that can refer to Georgia State University or other entities, depending on the context.