A Consolidation Between Two Firms Differs from a Merger Between

question 23

Multiple Choice

A consolidation between two firms differs from a merger between two firms in that the consolidation between two firms:

• A) is a backward vertical expansion strategy.
• B) is a forward vertical expansion strategy.
• C) leads to the formation of a new corporation.
• D) leads to an entity free from successor's liability.
• E) is a horizontal integration strategy.

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Definitions:

Punishment

The imposition of a penalty or undesirable consequence on an individual or animal in order to decrease the likelihood of a behavior occurring again.

Secondary Reinforcement

A concept in behaviorism where a stimulus reinforces a behavior not because it satisfies a biological need, but because it is associated with a primary reinforcer.

Praise

The expression of approval, commendation, or admiration towards someone or something.

Awards

Recognitions or prizes given for achievement, excellence, or performance in a particular field or discipline.