Mergers and Acquisitions (M & A)are Popular Methods of Increasing

question 88

Multiple Choice

Mergers and acquisitions (M & A) are popular methods of increasing the economic vitality of businesses.Which of the following statements is true regarding the current trends in M & A?

• A)Mergers and acquisitions hit an all time high in 2000 and the U.S. is not likely to see that level of activity for years to come.
• B)The current trend is toward divestures of unwanted divisions through split-offs.
• C)Mergers and acquisitions have been on the increase in recent years due to a downturn in the economy and financial statement misstatements.
• D)Congress has been trying to stimulate mergers and acquisitions in recent years through simplifications in the Code that make it easier to qualify for tax-free treatment.
• E)All of the above are true.

Recognize the significance of compensating differentials and how they affect earnings and job choices.

Comprehend the dynamics between executive compensation and the real wage of the average worker in the U.S.

Identify the factors that contribute to property accumulation for most families.

Analyze the impact of education and training as investments in human capital.

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Definitions:

Direct Labor

The compensation and perks given to workers directly engaged in creating goods or delivering services.

Ceramic Tile

A durable, hard flooring material made from shaping and firing clay, often used for floors and walls.

Budgeted Unit Sales

An estimate of the number of units a company expects to sell over a certain period, often used for planning and strategic purposes.

Inventory Policy

A set of guidelines a company follows to determine the optimum levels of inventory to hold.