上一主题:Reading 21:Inventories: Implications for Financial Statement
下一主题:Reading 28: Financial Reporting Quality: Red Flags and Accou
返回列表 发帖

Suppose that a manufacturer of steel bridge beams (BridgeCo) acquires its main supplier of the steel (SteelCo) used to make the beams. After the merger is completed, the only surviving entity is BridgeCo. This is best described as a:

A)
subsidiary merger.
B)
horizontal merger.
C)
vertical merger.



This is best described as a vertical merger, since BridgeCo is purchasing a company from which it gets production inputs. It could also be described as a statutory merger, since only the acquiring firm is in existence following the combination.

TOP

Which of the following is NOT a commonly used merger classification describing forms of integration?

A)
Regulatory merger.
B)
Consolidation.
C)
Subsidiary merger.



Regulatory merger is not a commonly used merger classification. Both remaining answers are commonly used to describe the form of integration following a merger.

TOP

[em62]

TOP

返回列表
上一主题:Reading 21:Inventories: Implications for Financial Statement
下一主题:Reading 28: Financial Reporting Quality: Red Flags and Accou