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Teresa's Taco Co. had the following results during the most recent year: Sales $500,000; Residual income $5,000; investment turnover 2.5; and a required rate of return of 15%. The return on sales was:
Acquiring Firm
A firm that acquires or gains control over another business by means of a merger, acquisition, or takeover.
Parent
The controlling company in a group of companies, which owns a controlling interest in one or more subsidiaries.
Vertical Merger
A business strategy where a company merges with another company that operates in the same industry but at a different stage of the production process.
Supplier-Customer Relationships
The interactions and transactions between a provider of goods or services and the entity that purchases them.
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