A Business Merger Differs from a Business Consolidation Because

question 30

Multiple Choice

A business merger differs from a business consolidation because

• A)a merger dissolves all but one of the prior entities,but a consolidation dissolves all of the prior entities.
• B)a consolidation dissolves all but one of the prior entities,but a merger dissolves all of the prior entities.
• C)a merger is created when two entities join,but a consolidation is created when more than two entities join.
• D)a consolidation is created when two entities join,but a merger is created when more than two entities join.

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to any change in market conditions.

Manufacturer

An entity engaged in the conversion of raw materials or components into finished goods for sale.

Total Product Curve

A graphical representation showing how the total quantity of output of a good or service varies with the amount of a variable input used in production.

Variable Input

Variable Input refers to any input in the production process that varies with the level of output, such as labor, raw materials, and energy, in contrast to fixed inputs which remain constant regardless of the level of production.