Organizing in Management: Definition and Functions

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12 Questions

What is the primary reason for businesses to combine?

To gain a competitive advantage

According to PFRS 3, what is the definition of a business combination?

A transaction in which an acquirer takes over a business

What is the classification of business combination based on the legal point of view?

Methods of Combination

Which type of business combination involves combining companies within the same industry that have been competitors?

Horizontal Integration

Why would a company choose vertical integration as a structure of combination?

To strengthen the supplier-customer relationship

What does an acquirer obtain in a business combination according to PFRS 3?

Complete control of one or more businesses

Which type of business combination involves little to no similarities between the companies involved?


In a statutory merger, what happens to the acquired company as a separate legal entity?

It ceases to exist

What method of business combination involves forming a new company to acquire all the net assets of two or more companies?

Statutory Consolidation

In stock acquisition, what happens to the acquired company as a separate legal entity?

It becomes a subsidiary

Which accounting method is used for all business combinations according to PFRS 3 Revised?

Purchase Method

In business combination, what is recognized and measured at fair value?

Identifiable Assets & Liabilities

Learn about the concept of organizing in management, including its definition and functions such as task assignment, resource allocation, and work activity coordination to achieve common goals.

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