MacTech Corporation Is a Subsidiary of Clickon Corporation,which Owns 90

question 10

Multiple Choice

MacTech Corporation is a subsidiary of Clickon Corporation,which owns 90 percent shares of MacTech.The management of Clickon is not happy with the way MacTech is being managed.They believe that MacTech is losing out a huge chunk of potential business to rivals due to mismanagement.As a solution,the board of directors of Clickon approves a merger between Clickon and MacTech and they send a copy of the merger plan to MacTech's shareholders.This form of merger is called a(n) :

• A) semi-merger.
• B) short-form merger.
• C) incomplete merger.
• D) half-merger.

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Definitions:

Opportunity Costs

The value of the next best alternative foregone as a result of making a decision.

Production Capacity

The maximum amount of goods or services a facility can produce over a given period under normal working conditions.

Widgets

A generic term typically used to describe any product or manufactured item in discussions or examples about economic theory, manufacturing, or sales.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.