/ Test Bank For Advanced Accounting, 12Th Edition 100% Verified (Q&A) Quaranteed Pass.**------------------------------------------------
/ TEST BANK FOR ADVANCED ACCOUNTING, 12TH EDITION 100% VERIFIED (Q&A) QUARANTEED PASS. Multiple Choice 100% FOR TEST BANK FOR ADVANCED ACCOUNTING 1. An economic advantage of a business combination includes: a. Utilizing duplicative assets. b. Creating separate management teams. c. Shared fixed costs. d. Horizontally combining levels within the marketing chain. ANSWER: c RATIONALE: Business combinations may viewed as a way to take advantage of economies of scale by utilizing common facilities and sharing fixed costs. 2. One large bank’s acquisition of another bank would be an example of a: a. market extension merger. b. conglomerate merger. c. product extension merger. d. horizontal merger. ANSWER: d RATIONALE: A horizontal merger occurs when two companies offering similar products or services that are likely competitors in the same marketplace merge. = 3. A large nation-wide bank’s acquisition of a major investment advisory firm would be an example of a: a. market extension merger. b. conglomerate merger. c. product extension merger. d. horizontal merger. ANSWER: c RATIONALE: A product extension merger occurs when the acquiring company is expanding its product offerings in the market place in which it sells. = 4. A building materials company’s acquisition of a television station would be an example of a: a. market extension merger. b. conglomerate merger. c. product extension merger. d. horizontal merger. ANSWER: b/LK RATIONALE: Because these firms are in unrelated lines of business, this would be a conglomerate merger.
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