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:

Home Repair

The process of fixing, upgrading, or maintaining various elements or systems within a residence.

Lessor

A property owner who allows others to use his or her property in exchange for payment.

UCC Covers

Embodies the scope of the Uniform Commercial Code, which governs commercial transactions in the United States.

Condominium Lease

A legal agreement where a tenant rents a unit in a condominium complex from the unit owner or landlord.