Virgin Blue Acquiring Tiger Air Is an Example of Which

question 41

Multiple Choice

Virgin Blue acquiring Tiger Air is an example of which of the following?

• A)Diversification
• B)Horizontal integration
• C)Vertical integration
• D)Concentration

---

Definitions:

Operating Lease

A lease agreement that does not transfer the risks and rewards of ownership, treated as a rental expense in the lessee's income statement.

Direct Financing Lease

A type of lease where the lessor records the present value of lease payments as a receivable, effectively transferring all risks and rewards of ownership.

Direct Financing Lease

A lease arrangement in which the lessor purchases an asset for the lessee and earns interest income over the lease term while the lessee uses the asset.