While a Horizontal Merger May Improve Profitability, It Will Not

question 83

True/False

While a horizontal merger may improve profitability, it will not necessarily reduce the portfolio risk of the acquiring company.

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Definitions:

Unrealized Gain

The increase in the value of an investment that has not been sold yet, and thus, the gain is not yet realized as actual income.

Adjusting Entry

An accounting transaction recorded at the end of a financial period to adjust account balances in the ledgers.

Philosophical Questions

Deep, fundamental questions that explore the nature of reality, existence, knowledge, values, reason, mind, and language.

Articulate

The ability to express one's thoughts and ideas clearly and effectively in spoken or written form.