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Alinara [238K]
3 years ago
13

Flexible Fittings was a small manufacturing company that made shut-off valves for gas pipe used in home and building constructio

n. Flexible purchased the General Gas Pipeline Company, which was Flexible Fittings' largest customer. This strategic decision bringing the two companies together is called a_________
a. horizontal merger.
b. vertical merger.
c. hostile acquisition.
d. conglomerate merger.
Business
2 answers:
tatuchka [14]3 years ago
6 0

Answer:

b. vertical merger.

Explanation:

A vertical merger is the joining of two firms at different stages of related businesses..

Tcecarenko [31]3 years ago
5 0

Answer: The correct option is B. Vertical Merger.

Explanation: A vertical merger is the combination of two or more companies that are involved in different stages of the supply chain of a common product or service.

Most often, a merger happens in order to increase synergies, gain more control of the supply chain process, and drive up business. A vertical merger will often result in incurring of lower costs, while increasing productivity and efficiency of the companies involved.

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Steve Colburn's portable sawmill used 100% for business, was completely destroyed by fire. The sawmill had an adjusted basis of
pashok25 [27]

Answer: $35,000

Explanation:

A casualty loss is simply a loss that an individual or business incurs when a property is damaged, or destroyed due to an unexpected or sudden event like fire, volcanic eruption, flood etc.

Here, Steve's casualty loss will be gotten when we compare both his adjusted basis and the fair market value and then we choose the lesser one. Since $35000 is lesser than $50000, therefore the answer will be $35000.

8 0
3 years ago
What is the main advantage of having a skill set with a high market value?
MrRa [10]
B. Employers are willing to pay more for those skills.
4 0
2 years ago
Purchases that have substantial social or economic consequences: question 13 options: represent routine purchases that pose litt
lana66690 [7]
<span>Purchases that have substantial sociale or economic consequences represent high-involvement purchase decisions because they require a deep scrutiny phase where positive consequences are compared with negative ones to understand if benefits outweigh losses and are desirable for society.</span>
7 0
3 years ago
A project initially costs $40,500 and will not produce any cash flows for the first 2 years. Starting in Year 3, it will produce
melisa1 [442]

Answer:

Net present value = $2063.1922

Explanation:

given data

initially costs = $40,500

cash flows = $34,500

final cash inflow = $12,000

required rate of return = 18.5 percent

solution

The cash flows is  

Year 0 =  $40500

Year 1 = $0

Year 2 = $0

Year 3 = $34500

Year 4 = $34500

Year 5 = $0

Year 6 = $12000

so  Net present value will be express as

Net present value = -Initial cash outflow + Present value of future cash flows ...............1

Present value of future cash flows = (cash flow in year n) ÷ (1 + required rate of return)^t   ..........................2

put here value we get

Present value = \frac{0}{(1+0.185)^1} + \frac{0}{(1+0.185)^2} + \frac{34500}{(1+0.185)^3} + \frac{34500}{(1+0.185)^4} + \frac{0}{(1+0.185)^5} + \frac{12000}{(1+0.185)^6}    

Present value = $42563.1922    

Net present value= -$40500 + $42563.1922

Net present value = $2063.1922

8 0
3 years ago
Franklin, Inc uses activity-based costing. The company produces X and Y. Information relating to the two products is as follows:
zvonat [6]

Answer:

A. $192,000

Explanation:

The computation of the labor related overhead cost is shown below:

= (Labor related overhead cost) ÷ (Total direct labor hours) × direct labor hours of X

= ($480,000) ÷ (16,000 hours + 24,000 hours) × 16,000 hours

= $192,000

hence, the correct option is A.

7 0
2 years ago
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