A Transaction in Which Two or More Business Organizations Combine

question 98

Multiple Choice

A transaction in which two or more business organizations combine into a single entity is called

• A) an acquisition
• B) a merger
• C) a buyout
• D) all of the above

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Definitions:

Surpluses

Occurs when the quantity of a good produced exceeds the quantity demanded, often leading to price reductions.

Inflationary Gap

A situation where the demand for goods exceeds supply at the current price levels, leading to an increase in prices and inflation.

Equilibrium GDP

The level of Gross Domestic Product where the aggregate supply equals aggregate demand within an economy, leading to a stable economic condition.

Full Employment GDP

The level of GDP produced when the economy is utilizing all available resources, including labor, at the maximum sustainable rate without causing inflation.