When two companies in entirely different industries combine, it is known as a ________

A) vertical merger
B) horizontal merger
C) product extension merger
D) conglomeration
E) market extension merger


D
Explanation: D) Conglomerations occur when two companies that have no common business merge to obtain diversification. Horizontal mergers occur when two companies that share the same product lines combine. A product extension merger is the combining of two companies selling different but related products. A vertical merger occurs when two companies that have a company/customer relationship or a company/supplier relationship combine. A market extension merger is a merger between two companies that sell the same product in different markets.

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Fierra Inc. is a German automobile manufacturer that has a five percent market share in the United States' automobile market. The company has a unit in North Carolina that imports Fierra automobiles from its parent company in Germany and assembles them. Which of the following measures is in accordance with the United States' Foreign Commerce Clause?

A. The government of North Carolina imposes an additional ten percent tax on Fierra cars. B. The government of Georgia bans the sale of Fierra cars. C. The government of North Carolina asks Fierra Inc. to shut down its import unit in the state. D. The federal government imposes an additional hundred percent tax only on Fierra cars being sold in North Carolina.

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What organizational factors are more likely to lead to expatriate adjustment?

a) A junior role in the organization b) Freedom to adjust the work role c) Role ambiguity d) Interaction only with other expatriates

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In CASE 4.2 Brown v. Entertainment Merchants Association (2011), involving the issue of whether a California statute could prohibit the sale or rental of graphically violent video games to minors, what was the holding of of U.S. Supreme Court?

a. That the law was valid because the video games did not qualify for First Amendment protection. b. That the law was valid because minors are not entitled to First Amendment protection. c. That the law was invalid because the state could not establish a rational basis for it. d. That the law was invalid because the state could not satisfy the strict scrutiny test applied.

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If a company has no preferred stock, basic earnings per share is equal to net income divided by the number of weighted average common shares outstanding.

Answer the following statement true (T) or false (F)

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