BACHELOR OF BUSINESS ADMINISTRATION

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BUSINESS ADMINISTRATION

BUSINESS ECONOMICS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Ivers Paint, founded in 1999, is a corporation that manufactures paint supply products. On Friday, officials announced that the company would merge with the Kildare Paint Supply Store, a partnership started in 1995 by the Kildare brothers. “This merger will benefit consumers because Ivers will be able to operate more efficiently and offer our products at a lower price at the Kildare Paint Supply Store, “ said a representative from Ivers Paint. Based on the excerpt from a news story, which statement best describes the merger of Ivers Paint and Kildare Paint Supply?
A
It is a conglomerate merger because one company is involved in manufacturing and the other in selling.
B
It is a partnership merger because one of the companies is a partnership.
C
It is a horizontal merger because both companies are involved in the paint supply business.
D
It is a vertical merger because the two companies are involved in different stages of the paint supply business.
Explanation: 

Detailed explanation-1: -The biggest benefit a corporation offers over other business structures is liability protection, according to Entrepreneur. Shareholders do not risk losing personal assets because of a company’s debts, because corporations are considered separate legal entities from the people who own them.

Detailed explanation-2: -What does the cartoon suggest about why a nonprofit might hire lobbyists to promote the interests of its organization? Lobbyists generally have ready access to lawmakers. Which type of business organization might offer low-interest loans to its members?

Detailed explanation-3: -Corporations are the most enduring legal business structure. A corporation can continue indefinitely, regardless of what happens to its individual directors, officers, managers, or shareholders.

Detailed explanation-4: -Associations may offer other services, such as producing conferences, holding networking or charitable events, or offering classes or educational materials. Many associations are non-profit organizations governed by bylaws and directed by officers who are also members.

There is 1 question to complete.
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