Which of the Following Is an Example of a Merger

question 43

Multiple Choice

Which of the following is an example of a merger undertaken in order to achieve economies of scale?

• A)A car manufacturer acquires a car parts supplier.
• B)A breakfast cereal producer acquires another breakfast cereal producer and the combined firm is able to negotiate a reduced cost for the grain used in its cereal.
• C)A telecommunications firm acquires another telecommunications firm and the combined firm serves a large percentage of the market.
• D)An accounting firm acquires another accounting firm and the combined firm is able to eliminate duplication among administrative positions.
• E)A video game development firm acquires another video game development firm that specializes in designing games for a new gaming system.

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Definitions:

Readability

The ease with which a reader can understand written text.

Large Fonts

The use of oversized text in written material to attract attention, emphasize key points, or aid in readability for the visually impaired.

Inverted Pyramid

A style of writing often used in journalism that presents the most important information at the beginning, followed by supporting details.

AIDA Model

A marketing framework that outlines the process for achieving successful advertising and sales experiences, standing for Attention, Interest, Desire, and Action.