The primary reason given by managers for most mergers is the acquisition of more assets so as to increase sales and market share.
Answer the following statement true (T) or false (F)
False
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Scenario D: A global cosmetics company called Nature's Beauty is considering its corporate strategy. Several members of its board of directors believe they have the "perfect" strategy for the company. Bill believes that the best option is for Nature's Beauty to stay on its current track of offering only organic cosmetics to customers who like organic products. Chita wants the company to expand by purchasing the manufacturing plants that produce the Nature's Beauty products. Another director, Manuel, wants to build the company by adding related products, such as skin care and perfume, to be sold alongside its current products. Finally, the original owner of the company, Nuri, wants to expand the company by doing something completely new, such as building restaurants or perhaps starting an
entertainment park.Which of the following corporate strategies does Chita favor? A. concentration B. conglomerate diversification C. vertical integration D. differentiation E. lateral diversification
Reba orders a pair of custom-made cowboy boots, C.O.D. from Home on the Range Western Wear. When the boots arrive, Reba pays the carrier for the boots, then opens the package, only to discover that the boots are the wrong snake skin color and three sizes too big. At this point:
a. she is entitled to inspect the goods after payment (due to the C.O.D. terms) and she can reject the boots because they are nonconforming. b. Reba cannot revoke the acceptance, because the wrong color and size of the boots are not substantial impairments. c. Home on the Range can allege that Reba did not conduct a proper inspection; therefore, though Home on the Range must cure, Reba is obligated to pay for the return of the incorrect boots and the shipment of replacement boots. d. None of the above.
Accounting principles require that inventory be reported at the market value (cost) of replacing inventory when market value is lower than cost.
Answer the following statement true (T) or false (F)
A sole proprietor is legally responsible for the business's contracts.
Answer the following statement true (T) or false (F)