Assume That You Are Currently Making $15,000 a Year as a Sales

question 42

Essay

Assume that you are currently making $15,000 a year as a sales clerk in a department store. At the end of your senior year in college in May you get a job offer from a large accounting firm that won't start until late August of that same year but which pays $45,000 per year. What would you expect might happen to your demand for an automobile and new clothes immediately and why?

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Definitions:

Acquiring Firms

Companies that purchase a majority stake in other companies to take over their operations.

Synergistic Benefits

Gains realized from the combination or cooperation of different groups, systems, or companies, where the result is greater than the sum of their separate effects.

Merger

The combination of two or more companies into one, to achieve greater efficiencies and strengthen financial and operational positions.

Operating Economies

Cost advantages that enterprises obtain due to the scaling of production or the efficient allocation of resources.