Roger Wants to Buy a New Car,so He Borrows Money

question 54

Multiple Choice

Roger wants to buy a new car,so he borrows money from the bank.Several months later,he sells his car to Lisa,who agrees to pay the bank loan.

• A)The bank is an intended third-party beneficiary.
• B)The bank is an incidental third-party beneficiary.
• C)Roger is an intended third-party beneficiary.
• D)Lisa is an intended third-party beneficiary.
• E)Lisa is an incidental third-party beneficiary.

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Definitions:

Preemptive Merger

A strategy where a company merges with or acquires another firm to prevent competitors from doing so, often to maintain its competitive advantage or market share.

Synergy

The additional value created when two or more entities combine forces or resources, leading to efficiency gains or enhanced performance that would not be possible independently.

External Growth

Expansion of a business through acquiring or merging with other companies, rather than from its own operations.

Internal Growth

The process of expanding a firm's operations from its own internally generated resources, without relying on takeovers or mergers with other companies.