Office Company and Keen Company Wish to Combine All Assets,stock,and

question 39

Multiple Choice

Office Company and Keen Company wish to combine all assets,stock,and personnel into a new firm to be called OK Corporation.This is

• A)a consolidation.
• B)a merger.
• C)a share exchange.
• D)a takeover.

---

Definitions:

Marginal Cost

The financial outlay for producing a subsequent unit of a product or service.

Market Price

The prevailing market rate at which a service or asset can be purchased or sold, influenced by the balance of supply and demand.

Marginal Cost

The additional cost incurred from producing one more unit.

Average Revenue

The revenue received per unit of goods or services sold.