Complete the Following Using the Terms Listed

question 25

Multiple Choice

Complete the following using the terms listed.
-A(n) _____ occurs when one firm purchases the property and assumes the obligations of another firm.

• A)small business
• B)corporation
• C)merger
• D)acquisition
• E)horizontal merger
• F)conglomerate merger
• G)Cooperative
• H)vertical merger
• I)business incubators
• J)business plan
• K)alien corporation
• L)preferred stock
• M)Franchising

Understand the effects of stock dividends on market price, equity, and the number of shares outstanding.

Grasp the accounting treatment and rationale behind stock splits.

Comprehend the capitalization of retained earnings for both small and large stock dividends.

Understand the various types of preferred stock and their features regarding dividends.

---

Definitions:

Overhead Costs

Indirect costs that cannot be directly attributed to specific products or services, such as utilities, rent, and managerial salaries.

Decision-making Model

A structured approach to making choices among alternatives, often involving steps such as problem identification, alternative generation, and evaluation.

Special Order

A one-time customer order for a product or service, often requiring a unique set of specifications or considerations outside regular offerings.

Idle Capacity

Unused or underused production capability, which occurs when a business has more resources available than is required to maintain its current level of production.