Which of the Following Statements Is True

question 214

Multiple Choice

Which of the following statements is true?

• A) Economists and financial analysts agree that mergers are good for the economy.
• B) Takeovers always increase a firm's productivity.
• C) Mergers in the first part of the twenty-first century will see an increase in debt financing.
• D) Mergers in the first part of the twenty-first century will be driven by cash-rich companies looking to acquire businesses that will enhance their position in the marketplace.
• E) There will be fewer mergers that involve investors from other countries.

---

Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes towards covering fixed costs and generating profit.

Fixed Costs

Expenses that do not change with the level of production or sales activities, such as rent, insurance, and salaries, over a certain period.

Composite Unit

A composite unit is an accounting measurement that combines the attributes of multiple units of a similar product or service into a single representation for easier management or evaluation.

Sales Mix

The proportion of different products or services that make up a company's total sales, affecting overall profitability and performance.