A Building Materials Company's Acquisition of a Television Station Would

question 25

Multiple Choice

A building materials company's acquisition of a television station would be an example of a:​

• A)​market extension merger.
• B)​conglomerate merger.
• C)​product extension merger.
• D)​horizontal merger.

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Definitions:

Liquidation Surplus

The amount of money remaining after all liabilities and obligations of a liquidating entity have been settled, which is then distributed to shareholders.

Preference Shares

Shares that give holders preferential rights over common shareholders regarding dividends and assets distribution upon liquidation.

Ordinary Shares

Securities that represent ownership in a corporation, giving the holder voting rights and a share in the company's profits via dividends.

Deferred Creditor

An entity to whom a payment is owed but the payment is delayed or deferred to a future date.