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3 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]3 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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If a company has five employees with annual salaries of $40,000, $90,000, $40,000, $30,000, and $80,000, respectively, what is t

inessss [21]

Mean is where you add all of the values together and then divide the total by the number of values.

After doing this, you should see this...

20,000+40,000+20,000+60,000+70,000 = 210,000

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210,000/5 = 42,000

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3 years ago

A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the

labwork [276]

Answer:

C alternative would yield the lowest total cost for an expected annual volume of 111 boats

Explanation:

The computation of each alternatives are shown below:

A (new location)

Fixed cost $310,000

Variable cost ($400 × 111 boats) $44,400

Transportation cost $5,300

Total cost $359,700

B (subcontract)

Fixed cost $0

Variable cost ($3,200 × 111 boats)$355,200

Transportation cost $32,000

Total cost $387,200

C (expand existing facilities)

Fixed cost $74,000

Variable cost ($1,200 × 111 boats) $133,200

Transportation cost $88,000

Total cost $295,200

Out of these, the alternative C has the lowest total cost

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3 years ago

Many firms are finding that high-tech, computerized training has dual benefits. It develops employees who are more effective and

Xelga [282]

This is an example of a(n) Organisational tangible resource

Explanation:

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Each organisation needs capital and assets to run.

A few of these commodities, including ability and entrepreneurship, are intangible, while the other commodities are measurable. Tangible means capital which can be observed, influenced or sensed.

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4 years ago

________ is defined as the extent to which your authority is accepted on grounds of competence, vision, or other qualities. A.

lora16 [44]

Answer:

A. Legitimacy

Explanation:

Legitimacy is defined as the extent to which your authority is accepted on grounds of competence, vision, or other qualities. This term is used mostly in the context of political science, mainly describing the right and acceptance of an authority and mostly deals with systems of governments or regimes where there are established individuals appointed authority.

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3 years ago

Read 2 more answers

On January 1, 20Y3, The Simmons Group, Inc., purchased the assets of NWS Insurance Co. for $37,152,500, a price reflecting an $5

Triss [41]

Answer:

The Simmons Group, Inc.

a. December 31, 20Y9, the book value of Goodwill before impairment = $5,572,875

b. Effects on the accounts of the December 31, 20Y9 adjustment for the goodwill impairment:

1. Impairment loss of $3,901,012 will be accounted for in the Income Statement for the year, thus reducing the reported profits by $3,901,012.

2. Goodwill be reduced to $1,671,863 in the balance sheet by deducting the impairment loss of $3,901,012 from the book value before the impairment.

Explanation:

a) Data and Calculations:

Jan. 1, 20Y3, Purchase price of NWS Insurance Co. = $37,152,500

Goodwill on acquisition = $5,572,875

December 31, 20Y9, the book value of Goodwill before impairment = $5,572,875

Impaired value - $1,671,863

Impairment loss = $3,901,012 ($5,572,875 - $1,671,863)

b) The Goodwill impairment shows that the carrying amount, $1,671,863, is less than the fair value of $5,572,875. Goodwill is an intangible asset which Simmons Group acquired from NWS Insurance on January 1, 20Y3. It is annually tested for impairment by comparing the fair value with the carrying value.

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3 years ago