The Complete Absorption of One Firm by Another Is Called

question 52

Multiple Choice

The complete absorption of one firm by another is called a:

• A) merger.
• B) consolidation.
• C) takeover.
• D) spin-off.

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Definitions:

Supervisory Salaries

Compensation paid to employees who oversee the work of other employees; it is considered a part of indirect labor costs in manufacturing settings.

Net Income

The total earnings of a company after subtracting all expenses, including taxes, interest, and operating expenses, from its total revenue.

Selling Price

The amount for which a product or service is sold to customers, determined by factors like cost, market demand, and competition.

Fixed Costs

Charges that persist unchanged with fluctuations in production or sales activities, such as leasing costs, employee salaries, and insurance fees.