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Explain Why Each of the Following Persons or Groups Would

question 46

Essay

Explain why each of the following persons or groups would be interested in seeing the financial statements of a company.Also state whether each has a direct or indirect financial interest.
a.Potential investor
b.Internal Revenue Service
c.A labor union
d.Securities and Exchange Commission
e.Potential creditor
f.Management
g.Economic planners


Definitions:

Antitrust Laws

These laws, including the Sherman and Clayton acts, attempted to enforce competition and to control the corporate merger movement.

Merger

Two or more firms combining to form a single firm.

Conventional Merger

The combination of two or more companies into a single entity through the acquisition or pooling of interests.

Horizontal

A term often used to describe expansion or growth across a single level or area, rather than vertically or hierarchically.

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