Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company. Identify : The type of business combination when an outboard engine manufacturer was taken over by inboard marine engineer manufacturer.

Question

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Answer 1

Question

Chapter 1, Problem 1UTI

a.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when an outboard engine manufacturer was taken over by inboard marine engineer manufacturer.

a.

Expert Solution

Answer to Problem 1UTI

This is market extension merger because they are increasing the geographical presence of the company.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

b.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when drug store chain was taken over by cosmetics manufacturer acquires.

b.

Expert Solution

Answer to Problem 1UTI

This is conglomerate merger because both are unrelated businesses merging together.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: Itis a merger of companies which deals with similar products and company.
Product extension merger: Itis a merger where the acquiring company is expanding its product offering.
Market extension merger: Itis a merger which increases the market area and coverage.
Conglomerate merger: Mergerof firms in unrelated business.

c.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when mail order movie rental company was taken over by financial holding company.

c.

Expert Solution

Answer to Problem 1UTI

This is product extension merger because company is expanding its product offerings.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

d.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when a chip manufacturer was taken over by a computer manufacturer.

d.

Expert Solution

Answer to Problem 1UTI

This is backward vertical integration because chips are used for making computers.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

e.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when broadcasting company was taken over by Walt Disney Company.

e.

Expert Solution

Answer to Problem 1UTI

This is forward vertical integration because they are hiring broadcasting company.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

f.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when Colorado electric utility company was taken over by California based electric utility.

f.

Expert Solution

Answer to Problem 1UTI

This is horizontal merger because both offer similar products.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Mergerof firms in unrelated business.

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Answer 2

Question

Chapter 1, Problem 1UTI

a.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when an outboard engine manufacturer was taken over by inboard marine engineer manufacturer.

a.

Expert Solution

Answer to Problem 1UTI

This is market extension merger because they are increasing the geographical presence of the company.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

b.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when drug store chain was taken over by cosmetics manufacturer acquires.

b.

Expert Solution

Answer to Problem 1UTI

This is conglomerate merger because both are unrelated businesses merging together.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: Itis a merger of companies which deals with similar products and company.
Product extension merger: Itis a merger where the acquiring company is expanding its product offering.
Market extension merger: Itis a merger which increases the market area and coverage.
Conglomerate merger: Mergerof firms in unrelated business.

c.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when mail order movie rental company was taken over by financial holding company.

c.

Expert Solution

Answer to Problem 1UTI

This is product extension merger because company is expanding its product offerings.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

d.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when a chip manufacturer was taken over by a computer manufacturer.

d.

Expert Solution

Answer to Problem 1UTI

This is backward vertical integration because chips are used for making computers.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

e.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when broadcasting company was taken over by Walt Disney Company.

e.

Expert Solution

Answer to Problem 1UTI

This is forward vertical integration because they are hiring broadcasting company.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

f.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when Colorado electric utility company was taken over by California based electric utility.

f.

Expert Solution

Answer to Problem 1UTI

This is horizontal merger because both offer similar products.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Mergerof firms in unrelated business.

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Answer 3

Question

Chapter 1, Problem 1UTI

a.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when an outboard engine manufacturer was taken over by inboard marine engineer manufacturer.

a.

Expert Solution

Answer to Problem 1UTI

This is market extension merger because they are increasing the geographical presence of the company.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

b.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when drug store chain was taken over by cosmetics manufacturer acquires.

b.

Expert Solution

Answer to Problem 1UTI

This is conglomerate merger because both are unrelated businesses merging together.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: Itis a merger of companies which deals with similar products and company.
Product extension merger: Itis a merger where the acquiring company is expanding its product offering.
Market extension merger: Itis a merger which increases the market area and coverage.
Conglomerate merger: Mergerof firms in unrelated business.

c.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when mail order movie rental company was taken over by financial holding company.

c.

Expert Solution

Answer to Problem 1UTI

This is product extension merger because company is expanding its product offerings.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

d.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when a chip manufacturer was taken over by a computer manufacturer.

d.

Expert Solution

Answer to Problem 1UTI

This is backward vertical integration because chips are used for making computers.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

e.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when broadcasting company was taken over by Walt Disney Company.

e.

Expert Solution

Answer to Problem 1UTI

This is forward vertical integration because they are hiring broadcasting company.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

f.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when Colorado electric utility company was taken over by California based electric utility.

f.

Expert Solution

Answer to Problem 1UTI

This is horizontal merger because both offer similar products.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Mergerof firms in unrelated business.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 1, Problem 1UTI

a.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when an outboard engine manufacturer was taken over by inboard marine engineer manufacturer.

a.

Expert Solution

Answer to Problem 1UTI

This is market extension merger because they are increasing the geographical presence of the company.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

b.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when drug store chain was taken over by cosmetics manufacturer acquires.

b.

Expert Solution

Answer to Problem 1UTI

This is conglomerate merger because both are unrelated businesses merging together.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: Itis a merger of companies which deals with similar products and company.
Product extension merger: Itis a merger where the acquiring company is expanding its product offering.
Market extension merger: Itis a merger which increases the market area and coverage.
Conglomerate merger: Mergerof firms in unrelated business.

c.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when mail order movie rental company was taken over by financial holding company.

c.

Expert Solution

Answer to Problem 1UTI

This is product extension merger because company is expanding its product offerings.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

d.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when a chip manufacturer was taken over by a computer manufacturer.

d.

Expert Solution

Answer to Problem 1UTI

This is backward vertical integration because chips are used for making computers.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

e.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when broadcasting company was taken over by Walt Disney Company.

e.

Expert Solution

Answer to Problem 1UTI

This is forward vertical integration because they are hiring broadcasting company.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

f.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when Colorado electric utility company was taken over by California based electric utility.

f.

Expert Solution

Answer to Problem 1UTI

This is horizontal merger because both offer similar products.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Mergerof firms in unrelated business.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 1, Problem 1UTI

a.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when an outboard engine manufacturer was taken over by inboard marine engineer manufacturer.

a.

Expert Solution

Answer to Problem 1UTI

This is market extension merger because they are increasing the geographical presence of the company.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

b.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when drug store chain was taken over by cosmetics manufacturer acquires.

b.

Expert Solution

Answer to Problem 1UTI

This is conglomerate merger because both are unrelated businesses merging together.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: Itis a merger of companies which deals with similar products and company.
Product extension merger: Itis a merger where the acquiring company is expanding its product offering.
Market extension merger: Itis a merger which increases the market area and coverage.
Conglomerate merger: Mergerof firms in unrelated business.

c.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when mail order movie rental company was taken over by financial holding company.

c.

Expert Solution

Answer to Problem 1UTI

This is product extension merger because company is expanding its product offerings.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

d.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when a chip manufacturer was taken over by a computer manufacturer.

d.

Expert Solution

Answer to Problem 1UTI

This is backward vertical integration because chips are used for making computers.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

e.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when broadcasting company was taken over by Walt Disney Company.

e.

Expert Solution

Answer to Problem 1UTI

This is forward vertical integration because they are hiring broadcasting company.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

f.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when Colorado electric utility company was taken over by California based electric utility.

f.

Expert Solution

Answer to Problem 1UTI

This is horizontal merger because both offer similar products.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Mergerof firms in unrelated business.

Answer 6

Chapter 1, Problem 1UTI

a.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when an outboard engine manufacturer was taken over by inboard marine engineer manufacturer.

a.

Expert Solution

Answer to Problem 1UTI

This is market extension merger because they are increasing the geographical presence of the company.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

Answer 7

Chapter 1, Problem 1UTI

a.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when an outboard engine manufacturer was taken over by inboard marine engineer manufacturer.

Answer 8

a.

Expert Solution

Answer to Problem 1UTI

This is market extension merger because they are increasing the geographical presence of the company.

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

Answer 13

b.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when drug store chain was taken over by cosmetics manufacturer acquires.

b.

Expert Solution

Answer to Problem 1UTI

This is conglomerate merger because both are unrelated businesses merging together.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: Itis a merger of companies which deals with similar products and company.
Product extension merger: Itis a merger where the acquiring company is expanding its product offering.
Market extension merger: Itis a merger which increases the market area and coverage.
Conglomerate merger: Mergerof firms in unrelated business.

Answer 14

b.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when drug store chain was taken over by cosmetics manufacturer acquires.

Answer 15

b.

Expert Solution

Answer to Problem 1UTI

This is conglomerate merger because both are unrelated businesses merging together.

Answer 16

b.

Expert Solution

Answer 17

b.

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: Itis a merger of companies which deals with similar products and company.
Product extension merger: Itis a merger where the acquiring company is expanding its product offering.
Market extension merger: Itis a merger which increases the market area and coverage.
Conglomerate merger: Mergerof firms in unrelated business.

Answer 20

c.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when mail order movie rental company was taken over by financial holding company.

c.

Expert Solution

Answer to Problem 1UTI

This is product extension merger because company is expanding its product offerings.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

Answer 21

c.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when mail order movie rental company was taken over by financial holding company.

Answer 22

c.

Expert Solution

Answer to Problem 1UTI

This is product extension merger because company is expanding its product offerings.

Answer 23

c.

Expert Solution

Answer 24

c.

Expert Solution

Answer 25

Expert Solution

Answer 26

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: Itis the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

Answer 27

d.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when a chip manufacturer was taken over by a computer manufacturer.

d.

Expert Solution

Answer to Problem 1UTI

This is backward vertical integration because chips are used for making computers.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

Answer 28

d.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when a chip manufacturer was taken over by a computer manufacturer.

Answer 29

d.

Expert Solution

Answer to Problem 1UTI

This is backward vertical integration because chips are used for making computers.

Answer 30

d.

Expert Solution

Answer 31

d.

Expert Solution

Answer 32

Expert Solution

Answer 33

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

Answer 34

e.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when broadcasting company was taken over by Walt Disney Company.

e.

Expert Solution

Answer to Problem 1UTI

This is forward vertical integration because they are hiring broadcasting company.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

Answer 35

e.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when broadcasting company was taken over by Walt Disney Company.

Answer 36

e.

Expert Solution

Answer to Problem 1UTI

This is forward vertical integration because they are hiring broadcasting company.

Answer 37

e.

Expert Solution

Answer 38

e.

Expert Solution

Answer 39

Expert Solution

Answer 40

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Merger of firms in unrelated business.

Answer 41

f.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when Colorado electric utility company was taken over by California based electric utility.

f.

Expert Solution

Answer to Problem 1UTI

This is horizontal merger because both offer similar products.

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Mergerof firms in unrelated business.

Answer 42

f.

To determine

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when Colorado electric utility company was taken over by California based electric utility.

Answer 43

f.

Expert Solution

Answer to Problem 1UTI

This is horizontal merger because both offer similar products.

Answer 44

f.

Expert Solution

Answer 45

f.

Expert Solution

Answer 46

Expert Solution

Answer 47

Explanation of Solution

The U.S federal trade commission defines six types of mergers

They are as follows:

Backward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a supply of services or product it provides.
Forward vertical integration: It is the deal where a company moves down the production marketing cycle by acquiring a company that uses it products.
Horizontal merger: It is a merger of companies which deals with similar products and company.
Product extension merger: It is a merger where the acquiring company is expanding its product offering.
Market extension merger: It is a merger which increases the market area and coverage.
Conglomerate merger: Mergerof firms in unrelated business.

Answer 48

Ch. 1 - Prob. 1UTI Ch. 1 - Prob. 3UTI Ch. 1 - Prob. 4UTI Ch. 1 - Prob. 5UTI Ch. 1 - Prob. 6UTI Ch. 1 - Prob. 7UTI Ch. 1 - Prob. 8UTI Ch. 1 - Prob. 9UTI Ch. 1 - Prob. 10UTI Ch. 1 - Prob. 1.1E

Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company. Identify : The type of business combination when an outboard engine manufacturer was taken over by inboard marine engineer manufacturer.

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company. Identify: The type of business combination when an outboard engine manufacturer was taken over by inboard marine engineer manufacturer.

Answer to Problem 1UTI

Explanation of Solution

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company. Identify: The type of business combination when drug store chain was taken over by cosmetics manufacturer acquires.

Answer to Problem 1UTI

Explanation of Solution

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company. Identify: The type of business combination when mail order movie rental company was taken over by financial holding company.

Answer to Problem 1UTI

Explanation of Solution

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company. Identify: The type of business combination when a chip manufacturer was taken over by a computer manufacturer.

Answer to Problem 1UTI

Explanation of Solution

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company. Identify: The type of business combination when broadcasting company was taken over by Walt Disney Company.

Answer to Problem 1UTI

Explanation of Solution

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company. Identify: The type of business combination when Colorado electric utility company was taken over by California based electric utility.

Answer to Problem 1UTI

Explanation of Solution

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Chapter 1 Solutions

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when an outboard engine manufacturer was taken over by inboard marine engineer manufacturer.

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when drug store chain was taken over by cosmetics manufacturer acquires.

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when mail order movie rental company was taken over by financial holding company.

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when a chip manufacturer was taken over by a computer manufacturer.

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when broadcasting company was taken over by Walt Disney Company.

Introduction: Acquisition is a corporate term used to represent purchase of another company and gaining the ownership of the company.

Identify: The type of business combination when Colorado electric utility company was taken over by California based electric utility.