If Two Firms in One Industry Join to Hold a Greater

question 108

Multiple Choice

If two firms in one industry join to hold a greater share of the industry,it will be referred to as

• A) consolidation.
• B) a takeover.
• C) an acquisition.
• D) a conglomerate.
• E) assimilation.

---

Definitions:

Primary Beneficiary

The main individual or entity designated to receive the benefits or payouts from an insurance policy, trust, or other financial instrument.

Consolidated

Referring to the financial statements that combine the financial information of a parent company with its subsidiaries to present as a single entity.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board for global use.

AFS-Debt Securities

Available-For-Sale Debt Securities are debt investments not classified as held-to-maturity or trading securities and can be sold before maturity.