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4 years ago

Explain the nature of mergers and acquisitions and the reasons why they may be used as a form of strategy development.

Business

1 answer:

Drupady [299]4 years ago

3 0

Answer:

Mergers and acquisitions consist of either joining two or more firms, or having one firm acquire another firm.

The rationale behind a merger or acquisiton is always strategic: a merger or an acquisition is carried out with the goal of improving the economic position and performance of the firms involved.

Some business strategies that can be implemented by a merger or acquisition are:

Horizontal integration: companies that sell similar products merge in order to join forces and expand their market reach.
Vertical integration: companies in the same industry, but that sell different products (for example, one company sells cars and the other sells bikes) merge in order to expand their market share.
Conglomerate formation: companies in different industries join in order to expand their markets even more.

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NemiM [27]

As Sanjay's company was the first to introduce fresh food meal kits in a box that are delivered to consumers' homes, the idea is an example of innovation.

<h3 /><h3>Business innovation</h3>

Innovation is vital to the long-term success of the business in the marketplace. It can be defined as the process of creating a new idea, method or object to fulfill some need. In the business environment, innovation will be a competitive differentiator for a company.

Therefore, disruptive and incremental innovation are essential concepts to generate value, efficiency and positioning for an organization in the market.

The correct answer is:

Innovation

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2 years ago

Event sponsorship is not an effective public relations tool. The most common publicity-based tool is the press conference. Marke

Mariana [72]

Public relations (PR) is the process of maintaining a favorable image and building associated with events, sponsorships and other PR-related activities.

<h3>What is Public relations?</h3>

The practice of managing and disseminating information from an individual or organization to the public in order to influence their public perception is known as public relations. The distinction between public relations and publicity is that PR is controlled internally, whereas publicity is not controlled and is contributed by third parties.

Public relations professionals create and maintain a positive public image for a business or organization. They generate media, ranging from press releases to social media messages, that shape public opinion of the company or organization and raise brand awareness.

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7 0

1 year ago

Money used to finance business activities is known as

nadya68 [22]

In the cash flow statement financing activities refer to the flow of cash between a business and its owners and creditors.

4 0

3 years ago

In a retail cash sales environment, which of the following controls is often absent?

JulijaS [17]

Answer:

The correct answer to the following question is option b) Separation of functions.

Explanation:

In a retail environment , the cash management process starts when a customer pays the cashier for the product or services he or she has purchased. The cashier then counts the cash in till drawer and then at end of the day cashier takes that cash to the third party who can be either manager or owner or a supervisor. Then cashier would receive a receipt against the cash for till drawer.

Now supervisor would collect cash from all the cashier and prepare the cash to be deposited in bank. So from this process it is quite clear that here there is separation of functions here and while all other options given in the question are present in the process.

6 0

3 years ago

Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate

babunello [35]

Full question:

Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate calculations.)

Sales $ 687,900

Costs $442,800

Depreciation $115,400

EBIT $

Taxes (30%)

Net income $

OCF

What is the depreciation tax shield?

Answer:

Operating Cash Flow(OCF)= $206190

Depreciation tax shield = $34620

Explanation:

To calculate Depreciation tax shield:

Depreciation×tax rate= $115400×0.30=$34620

Operating Cash flow(OCF)= Earnings before interest and taxes(EBIT)+depreciation - income tax expense

So we calculate EBIT and Income tax expense

EBIT= Sales - cost of good sold - depreciation expense

= $ 687,900-$442,800-$115,400= $129,700

Income tax expense= (Sales - cost of goods sold - depreciation expense) × tax rate

=($687900-$442800-$115400)×0.30

=$38910

Therefore, Operating Cash flow(OCF)= $129,700+$$115,400-$38910= $206190

3 0

3 years ago