A horizontal merger takes place between companies operating: a. At different stages of the production process b. In the same area of business c. In unrelated lines of business d. All of the above e. None of the above
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A horizontal merger takes place between companies operating:
a. At different stages of the production process
b. In the same area of business
c. In unrelated lines of business
d. All of the above
e. None of the above
Step by step
Solved in 2 steps
- Which of the following is a vertical combination? a. A combination where the two entities are competitor in the same industry b. A combination where the two entities have a potential buyer/seller relationship c. A combination where the two entities are unrelated d. None of the above describes a vertical combinationA conglomerate merger takes place between firms in completely different industries.; True or FalseThe entity that obtains control over another business in a business combination called the A. ControllerB. AcquireeC. AcquirerD. Controllee
- 8. During the post-merger integration of two companies, which of the following activities support a successful change? a. implementing the merger integration plan as soon as possible b. ensuring key profit levers are under control c. constant communications d. a and c only e. all of the aboveAn expansion consists of: - taking over another business - merging with another business - both.Scenario Many companies transfer inventories from one subsidiary to another. Often the companies have integrated operations in which one subsidiary provides raw materials, another manufacture finished products, and another distributes, and perhaps another sells the product at retail. Required: Discuss how intercompany transfers should be treated for consolidation purposes, in both the statement of financial position and the statement of comprehensive income. Also, make reference to the related IFRS’s an IAS’s.
- Scenario Many companies transfer inventories from one subsidiary to another. Often the companies have integrated operations in which one subsidiary provides raw materials, another manufacture finished products, and another distributes and perhaps another sells the product at retail. Required: Discuss how intercompany transfers should be treated for consolidation purposes, in both the statement of financial position and the statement of comprehensive income.Many companies transfer inventories from one subsidiary to another. Often the companies have integrated operations in which one subsidiary provides raw materials, another manufacture finished products, and another distributes and perhaps another sells the product at retail. Required: Discuss how intercompany transfers should be treated for consolidation purposes, in both the statement of financial position and the statement of comprehensive income.The following are sentences relating to types of mergers and acquisitions. Which is/are true? [S1] Both horizontal and product-extension types of M&A involve catering to the same market group before and after the M&A. [S2] A vertical M&A involves a supplier or buyer of the acting firm as the target firm.a. Only S1 is true.b. Only S2 is true.c. Neither is true.d. Both are true.
- In a business combination, the acquiree is the business that: Select one: a. Finances the business combination. b. Pays the acquisition consideration. c. The acquirer obtains control of in a business combination. d. Obtains control of the acquiree.A business combination in which the boards of directors of the potential combining companies negotiate mutually agreeable terms is a(n) * O unfriendly combination. agreeable combination. hostile combination. O friendly combination.Which most accurately describes what happens to consolidation worksheet entries, assuming there is no push down accounting Worksheet entries are posted only to the ledgers of the subsidiary as post closing entries Worksheet entries are posted to the ledgers of the company owning the noncontrolling interest Worksheet entries are posted to the ledgers of both the parent and subsidiary as post closing entries Worksheet entries are posted only to the ledgers of the parent as post closing entries Worksheet entries are not posted to either the books of the parent or the subsidiary
