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.
Answer:
b. Interest on a note payable should be credited to Notes Payable because it increases the amount of principal to be repaid at the maturity of the note.
Explanation:
Interest accrued on a note payable journal entry :
Debit : Interest Payable
Credit : Note Payable
Answer:
True
Explanation:
Penetration pricing represents a marketing strategy employed by organisations with the goal of attracting customers to new products or services. These products or services are often offered at lower prices specifically to encourage people to test them and thus bring their awareness to the market, in other words, penetrate the market.
At times penetration pricing is not only used to acquaint consumers to a product, it is also used to thin out a competitor's customer base. Specifically, low prices and as stated in the question heavy couponing are strategies that are used to attract a wide number and range of customers to a product.
Lysol therefore, used penetration pricing based on low sales price and heavy couponing to attract consumers to its sanitizing wipes and when a satisfactory result had been achieved, the pricing rose and the couponing reduced. However, the consumer base is already established.
Answer:
The correct answer is option II and III only.
Explanation:
Monopolistic competition is a market structure where there is a large number of buyers and sellers. The sellers in this market sell differentiated products which are close substitutes.
There is a very low restriction on the entry of new firms in the market. Because of differentiated products each firm has some degree of market power. The firms face a downward-sloping demand curve. This means that the firms decide the price level.
Though the firms enjoy zero economic profits in the long run.
Researchers in the health and social sciences can obtain their data by getting it directly from the subjects they’re interested in. This data they collect is called primary data. Another type of data that may help researchers is the data that has already been gathered by someone else. This is called secondary data. Hope this helped!
