Barry and Fiona Each Own 15 000 Shares in the Texas

question 24

Multiple Choice

Barry and Fiona each own 15 000 shares in the Texas Company Ltd. If Barry sells her shares directly to Fiona:

• A) the Texas Company share capital remains the same.
• B) the Texas Company share capital decreases.
• C) the Texas Company share capital increases.
• D) the Texas Company bank increases.

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Definitions:

Horizontal Integration

A strategy used by businesses to increase their market share by acquiring or merging with competitors operating at the same level of the supply chain.

Supply-Chain Strategy

Planning and management of all activities involved in sourcing, procurement, and logistics management activities.

Vertical Integration

The expansion of a company's operations into different stages of production within the same industry, usually to increase control over the supply chain.

Cost-Based Price Model

A pricing strategy where the selling price is determined by adding a mark-up to the total cost of production.