Which One of the Following Combinations of Firms Would Benefit

question 63

Multiple Choice

Which one of the following combinations of firms would benefit the most through the use of complementary resources?

• A)a ski resort and a travel trailer sales outlet
• B)a golf resort and a ski resort
• C)a hotel and a home improvement center
• D)a swimming pool distributor and a kitchen designer
• E)a fast food restaurant and a dry cleaner

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Definitions:

IFRS 3

The International Financial Reporting Standard that deals with the accounting for business combinations, requiring assets, liabilities, non-controlling interest, and goodwill to be accounted for at fair value.

Mutual Entities

Organizations owned by their members, profits are distributed among them or used to reduce costs.

Transactions Costs

Transactions costs are the costs incurred in buying or selling a security or asset, which may include brokers' fees, taxes, and other charges.

Brokerage Fees

Fees charged by a broker to execute transactions or provide specialized services.