Recently there have been several mergers involving Big Four accounting firms. One such merger involved the firms of Arthur Young and Ernst & Whinney, who combined to form Ernst & Young. This is an example of a
| a. |
syndicate. |
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| b. |
vertical merger. |
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| c. |
conglomerate merger. |
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| d. |
horizontal merger. |
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| e. |
joint venture. |
Recently, Amazon announced it was purchasing Whole Foods for $13.4 billion. Amazon is an online retailer which sells everything from books to batteries and Whole Foods is a natural and organic foods grocer. This is an example of a
| a. |
hostile takeover. |
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| b. |
leveraged buyout. |
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| c. |
vertical merger. |
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| d. |
conglomerate merger. |
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| e. |
horizontal merger. |
Suppose Bill Gates, founder of software giant Microsoft, is interested in acquiring a small company that manufactures software packaging materials. He may offer to purchase the stock of this company at a price that is just high enough to tempt the current stockholders. This action would be called a
| a. |
vertical merger. |
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| b. |
leveraged buyout. |
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| c. |
competitive merger. |
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| d. |
horizontal merger. |
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| e. |
hostile takeover. |
1.The correct option is d. Horizontal Merger
2. The correct option is d. conglomerate merger.
3. The correct option is a. Vertical merger
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Recently there have been several mergers involving Big Four accounting firms. One such merger involved the...
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