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3 years ago

Describe the difference between vertical mergers, horizontal mergers, and conglomerates

1 answer:

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What is the difference between a horizontal merger and a vertical merger?

A vertical merger is one in which a firm or company combines with a supplier or distributor, while a horizontal merger is when two companies competing in the same market merge or join together. Or u can also u this one... Merger-a combination of two companies
horizontal-combo of firms competing in the same market with the same good or service
vertical-the combo of two firms involved in different states of producing the same good or service
conglomerates-business combo merging more than three businesses that make unrelated products

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Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or b

loris [4]

Answer:

The correct answer is a) Payor Benefit

Explanation:

When the payor dies or becomes disabled, the insurer will suspend the premiums until the child reaches 19 years old, the child must be under age 18, or up to age 19 and still attending high school. Usually, the payor is a parent (father, mother, brothers).

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3 years ago

What is accountability

Rama09 [41]

Accountability is a promise that a person or a group will be judged on how they perform or behave in relation to anything for which they are accountable.

Though more from the standpoint of oversight, the phrase refers to accountability. For instance, an employee might be in charge of making sure that a response to an RFP (request for proposals) complies with all the standards. Consequences may or may not occur if the work is not completed satisfactorily. Accountability, on the other hand, indicates that the worker is required to successfully complete the task and will need to at least justify their failure.

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2 years ago

Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct manufacturing costs of $12 per un

vovikov84 [41]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct manufacturing costs of $12 per unit. The expected production activity for the first four months of 2017 is as follows: January February March April Estimated production in units 6,000 7,000 3,000 4,000

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

January:

Estimated manufacturing overhead rate= (80,000/6,000)+12= 25.33 per unit

February:

Estimated manufacturing overhead rate= $23.43

March:

Estimated manufacturing overhead rate= 38.67

April:

Estimated manufacturing overhead rate= $32

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

January= 6,000*25.33= $151,980

February= 7,000*23.43= $164,010

March= 3,000*38.67= 116,010

April= 4,000*32= $128,000

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3 years ago

Jared is giving a speech on the devastating effects of poverty and hunger, and he decides to use some statistics to emphasize th

Savatey [412]

fgedilbvxAnswer:

Explanation:

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3 years ago

Laramie Labs uses a risk-adjustment when evaluating projects of different risk. Its overall (composite) WACC is 10%, which refle

Allushta [10]

The correct option is 3. A, B, and D.

The set of projects would maximize shareholder wealth is A, B, and D.

<h3>What is low-risk projects?</h3>

Low risk suggests that there won't be a significant negative effect on the organization should the project fail.

The computation of the provided data is displayed below, depending on the circumstance:

To determine which projects set would maximize shareholder wealth, we must compare the WACC to the anticipated return.

Below are some specific risk WACC (needed return) (%), expected return (%), and accept or reject reasons-

High 12 Project A 15 Select WACC is less profitable than anticipated.
The return for Project B's Average 10-12 Select WACC is less than anticipated.
WACC for Project C High 12/11 Reject is greater than anticipated return.
Low Project D 8-9 Select WACC is less profitable than anticipated.
WACC for Project E Low 8 6 Reject is higher than anticipated return.

Therefore, in order to maximize shareholder wealth, option C (projects A, B, and D) should be chosen.

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The complete question is-

Laramie Labs uses a risk-adjustment when evaluating projects of different risk. Its overall (composite) WACC is 10%, which reflects the cost of capital for its average asset. Its assets vary widely in risk, and Laramie evaluates low-risk projects with a WACC of 8%, average-risk projects at 10%, and high-risk projects at 12%. The company is considering the following projects:

Project Risk Expected Return

A High 15%

B Average 12%

C High 11%

D Low 9%

E Low 6%

Required:

Which set of projects would maximize shareholder wealth?

A and B.
A, B, and C.
A, B, and D.
A, B, C, and D. A, B, C, D, and E.

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2 years ago