A Merger Between Firms That Are in the Same Industry

question 116

Multiple Choice

A merger between firms that are in the same industry is called a

• A) conglomerate merger.
• B) horizontal merger.
• C) vertical merger.
• D) none of the above.

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, representing the wear and tear, deterioration, or obsolescence of the asset.

Useful Life

The estimated period over which an asset is expected to be used before it is considered to be no longer useful for business operations.

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, reflecting how much of the asset's value has been used up.

Deferred Revenues

Income received by a company for goods to be delivered or services to be provided in the future, recorded as a liability until earned.