Answer:
e
Explanation:
A merger can be described as the absorption of one firm by another firm.
When a merger occurs, one of the firms would not exist as a separate entity while the other firm would continue to exist.
<em><u>Types of merger </u></em>
<em><u>1. Horizontal merger : </u></em>this is a type of merger that occurs between firms in the same industry. The firms are usually competitors.
<u><em>Reasons for an horizontal merger</em></u>
- It is done to increase the market power of a firm
- This type of merger is done to achieve economies of scale.
An example of an horizontal merger is the merger between Mobil and Exxon in 1999.
2.<u><em> Vertical merger : </em></u>this is when a firm purchases another firm in the same production line. e.g. a baker purchases a pastry distributing company
<u><em>Reasons for a vertical merger</em></u>
- Cost savings
- It provides the firm acquiring a greater control of the production process.
<u><em>Types of vertical merger</em></u>
<u><em>a. Backward integration :</em></u> it is when the acquiring firm purchases a firm ahead of it in the production process. e.g. a baker purchases a pastry distributing company
<u><em>b. Forward integration :</em></u> it is when the acquiring firm purchases a firm that is behind it in the production process. e.g. a baker purchases a firm that supplies grains
<u><em>3. Conglomerate merger : </em></u>This occurs when the products of the merging firms were not related in any manner before the merger.
<u>Full question:</u>
You know that firm XYZ is very poorly run. On a scale of 1 (worst) to 10 (best), you would give it a score of 3. The market consensus evaluation is that the management score is only 2. Should you buy or sell the stock?
A. Buy
B. Sell
<u>Answer:</u>
Buy the stock
<u>Explanation:</u>
At any position in time, the stock price displays all candidly accessible erudition about the company. This implies that an investor can obtain abnormal returns only if that investor holds private erudition about the firm's forecasts.
The firm's administration is not as critical as everyone else considers it to be, hence, the firm is underestimated by the market. You are scarcely hopeless about the firm's probabilities than the assumptions constructed into the stock price. As the administration of the firm is not as weak as anticipated to be. So the investor will determine to buy the stocks of the firm.
Answer:
C. Not being able to spend that $100 on some furniture for your house
Explanation:
A possible opportunity cost when you spend $100 on a pair of sneakers is: Not being able to spend that $100 on some furniture for your house. A possible opportunity cost when you spend $100 on a pair of sneakers is: Not being able to spend that $100 on some furniture for your house.
Answer: -100
Explanation: 5,000 - 3,000 - 200, -1,900 =
Answer: $0
Explanation: The total amount of an individual's Gross income which is taxed is called the taxable income. An individual's Adjustable Gross Income may include expenses such as charitable contribution, mortgage interest, medical and some other eligible expenditure which are are deducted in other to lessen the taxable income of such individual. Such deductions are called the Itemized deductions.
However, personal expenses DO NOT CONTRIBUTE to an individual's Itemized deduction and as such, MIKE HANSEN'S ITEMIZED DEDUCTION IS ZERO.
The $6000 incurred is classed under personal expenditure and is not deductible.