If the Acquiring Firm and Acquired Firm Are Not Related

question 25

Multiple Choice

If the acquiring firm and acquired firm are not related to each other, then the acquisition is known as

• A) consolidation
• B) aggregation
• C) Takeovers
• D) Conglomerate acquisition

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Definitions:

Marketable Securities

Financial instruments or securities that are easily convertible into cash within a short period without a significant loss of value.

Accounts Receivable

Money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Inventory Turnover

Inventory Turnover is a ratio that shows how many times a company's inventory is sold and replaced over a period of time, indicating the efficiency of inventory management.

Average Collection Period

The average time it takes for a business to receive payments owed by its customers, indicating the efficiency of the company's credit and collection policies.