1) K-Mart acquired Sears so that both companies could better compete with Wal-Ma

Question

1) K-Mart acquired Sears so that both companies could better compete with Wal-Mart. This acquisition is an example of a:

a. vertical merger.
b. conglomerate merger.

c. horizontal merger.

d. hostile takeover.

2) Statement I. A merger between General Motors and Ford Motor Company would be a vertical merger.
Statement II: Vertical mergers are legal; horizontal mergers are not.

a. Statement I is true and statement II is false.
b. Statement II is true and statement I is false.
c. Both statements are true.
d. Both statements are false.

3)The most common corporate crime is ______________.

a. taking advantage of insider knowledge for ill-gained profits
b. embezzlement
c. overstating costs

d. overcharging customers

4)Interlocking directorates refers to a situation where:

a. A director of one firm is also a board member of a competing firm
b. Members of the Board of Directors of a firm could not agree on a clear strategy for the firm
c. Competing firms have separate and different members in their boards
d. A company's board splits into two rival camps locked in constant struggle

Explanation / Answer

1)c

2)b

3)b

4)a

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.