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how does unitranche debt work
structured unitranche debt will divide pieces of the structured debt vehicle into tranches each with its own class designation the bottom lineunitranche debt combines senior debt and subordinated debt into one loan allowing banks to compete better against private debt funds it is a hybrid loan structure that is typical...
what is units per transaction upt
units per transaction upt is a sales metric often used in the retail sales sector to measure the average number of items that customers are purchasing in any given transaction the higher the upt the more items customers are purchasing for every visit understanding units per transaction upt retailers want people who ent...
what this tells us is that a chunk of the department store s transaction growth was boosted by loyal customers spreading out purchases more than usual as opposed to macy s attracting an influx of new shoppers perhaps the company s relatively new loyalty program which offers top spenders free shipping regardless of how ...
analyzing units per transaction upt can help companies adjust operational factors advertising methodologies and even store layouts to entice customers into making more purchases and boosting units per transaction upt
what is unisex legislation
in the insurance industry the term unisex legislation refers to laws and legal decisions that made it illegal for insurance companies to charge different rates to men and women within certain types of insurance the term is mainly used in relation to the group insurance policies which companies offer to their employees
how unisex legislation works
to determine a reasonable premium insurers consider various factors that would be relevant for predicting the likelihood of future claims for example in the case of health insurance an insurer might look at the age of the insured person as well as their lifestyle habits personal factors such as their gender and ethnici...
what is unissued stock
unissued stock are company shares that do not circulate nor have they been put up for sale to either employees or the general public as such companies do not print stock certificates for unissued shares unissued shares are normally held in a company s treasury their number typically has no bearing on shareholders under...
when a company goes public it authorizes a certain number of shares to be created in its charter or articles of incorporation these shares are referred to as authorized stock authorized stock is comprised of all stock that has been created including shares up for sale to investors and issued to employees as well as any...
the number of unissued shares can be calculated by taking total shares authorized for issuance and subtracting this from total shares outstanding plus treasury stock from the total number of authorized shares treasury stocks are the shares repurchased by a company unissued shares are not relevant to stockholders in the...
what is universal banking
universal banking is a system in which banks provide a wide variety of comprehensive financial services including those tailored to retail commercial and investment services universal banking is common in some european countries including switzerland universal banking became more common in the united states starting in...
how universal banking works
universal banks may offer credit loans deposits asset management investment advisory payment processing securities transactions underwriting and financial analysis while a universal banking system allows banks to offer a multitude of services it does not require them to do so banks in a universal system may still choos...
what is an example of universal banking
examples of universal banks include jpmorgan chase bank of america wells fargo ubs bnp paribas deutsche bank and barclays all of these banks provide a gamut of banking services from retail banking to investment banking
what is the advantage of universal banking
the advantage of universal banking for a customer is that it allows a customer to manage all of their finances under one roof for example a person can have a checking account a loan a mortgage asset management services and other investment services all at one institution sometimes they receive benefits or discounts for...
what is a disadvantage of a universal bank
disadvantages of universal banks include risk concentration for the client and a conflict of interest in certain areas between bank and investor primarily in regards to interest earned on deposits the bottom lineuniversal banking refers to when banks provide a wide array of financial services including commercial banki...
what is universal default
the term universal default refers to a provision found in some credit cards cardholder agreements according to this provision the credit card company is permitted to increase the interest rate on the credit card if the cardholder fails to make their minimum monthly payment importantly credit card companies can also inc...
how universal default works
historically universal default provisions could be used to increase interest rates on the full outstanding balance of credit card debt however since the passage of the credit card accountability responsibility and disclosure card act in 2009 credit card companies are only permitted to increase their interest rates on a...
what is universal healthcare coverage
universal healthcare coverage refers to systems in which all residents of a particular geographical area or country have health insurance an early example of universal healthcare coverage is germany in the 1880s when chancellor otto von bismarck introduced a series of bills guaranteeing access to healthcare today most ...
what is universal life ul insurance
universal life ul insurance is a type of permanent life insurance that like other permanent insurance has a cash value element and offers lifetime coverage as long as you pay your premiums unlike whole life insurance universal life allows you to raise or lower your premiums within certain limits and it can be cheaper t...
how universal life ul insurance works
ul insurance provides more flexibility than whole life insurance policyholders can adjust their premiums and death benefits ul insurance premiums consist of two components a cost of insurance coi amount and a saving component known as the cash value 2as the name implies the coi is the minimum amount of a premium paymen...
when a policyholder dies the insurance company keeps the account s cash value your beneficiaries will be paid just the death benefit as the policyholder can only use the cash value while they are alive however some life insurance policies allow you to increase the death benefit as you build the cash value 8
universal life insurance vs term life insurance vs whole life insuranceuniversal life is a form of permanent life insurance that gives policyholders flexibility in paying premiums a cash savings component and a death benefit universal life insurance allows you to borrow against or cash in their savings portion which gr...
what is universal life ul insurance and how does it work
ul insurance policies are a form of permanent life insurance with flexible premiums unlike term life ul policies can accumulate interest bearing funds like a savings account also policyholders can adjust their premiums and possibly their death benefit and those paying extra toward their premium receive interest on that...
what is the biggest disadvantage of universal life insurance
a big disadvantage is that you need to keep an eye on the cash value if you don t then the policy could become underfunded meaning you ll have to make big payments to keep the policy active also there is risk that when interest rates drop your cash value won t grow as much as you had hoped however there is typically a ...
which is better whole life or universal life
both whole life and universal life are forms of permanent life insurance and provide a cash value savings component that policyholders may borrow from or cash out whole life offers fixed premiums while ul premiums may start out lower but are flexible so they may increase as you age depending on the amount of coverage a...
what is the difference between universal life and whole life insurance
whole life insurance is more stable because the death benefit will never go down if you pay your premiums which are fixed monthly amounts universal life insurance offers more flexibility but your death benefit isn t guaranteed you can increase or decrease the amount you spend on premiums with universal life and you may...
what are universal market integrity rules umir
universal market integrity rules umir are a set of rules governing trading practices in canada these rules are set out by an independent regulator the investment industry regulatory organization of canada iiroc umir were established to promote fair equitable and efficient markets prior to the formation of the umir each...
what is a universe of securities
a universe of securities generally refers to a set of securities that share a common feature for example the broad universe of stocks for a u s investor will include all listed companies large and small and may also include foreign companies listed as american depositary receipts adrs for some investors a narrower univ...
what is the university of miami patti and allan herbert business school
the university of miami patti and allan herbert business school often referred to simply as the miami herbert business school is a business school located at the university of miami in coral gables florida founded in 1929 the school offers a mixture of undergraduate and graduate programs including the master of busines...
what is an unlawful loan
an unlawful loan is a loan that fails to comply with or contravenes any provision of prevailing lending laws examples of unlawful loans include loans or credit accounts with excessively high interest rates or ones that exceed the legal size limits that a lender is permitted to extend an unlawful loan may also be some f...
should a lender or loan servicer try to alter those terms or charge the student for filling out the free application for federal student aid fafsa that would also make for an unlawful loan
unlawful loans and the truth in lending actthe truth in lending act applies to most types of credit whether it be closed end credit such as an auto loan or mortgage or open ended credit such as a credit card the act regulates what companies can advertise and say about the benefits of their loans or services the truth i...
do you have to pay back an illegal loan
if a loan was made illegally then you do not actually have to pay back the loan if a lender does not have a consumer credit license it is illegal for them to make a loan it is not illegal to borrow the money however unlicensed lenders are known as loan sharks loan sharks have no legal right to claim the money that you ...
what qualifies as predatory lending
predatory lending is any lending that takes advantage of the borrower through unfair and abusive practices or loan terms these can include extremely high interest rates high fees undisclosed costs and terms and any characteristic that reduces the equity of the borrower can you go to jail for not paying a loan no you ca...
what is unlevered beta
beta is a measure of market risk unlevered beta or asset beta measures the market risk of the company without the impact of debt unlevering a beta removes the financial effects of leverage thus isolating the risk due solely to company assets in other words how much did the company s equity contribute to its risk profil...
how can unlevered beta help an investor
unlevered beta removes any beneficial or detrimental effects gained by adding debt to the firm s capital structure comparing companies unlevered betas give an investor clarity on the composition of risk being assumed when purchasing the stock since companies have different capital structures and levels of debt an inves...
what is beta
simply put beta is a measure of market risk more precisely it is a measure of the volatility or systematic risk of a security or portfolio compared to the market as a whole in statistical terms it is the slope of the coefficient for a security stock regressed against a benchmark market index s p 500 each of these data ...
what is levered beta
levered beta measures the risk of a firm with debt and equity in its capital structure to the volatility of the market a key determinant of beta is leverage which measures the level of a company s debt to its equity so a publicly traded security s levered beta measures the sensitivity of that security s tendency to per...
what is unlevered cost of capital
unlevered cost of capital is an analysis using either a hypothetical or an actual debt free scenario to measure a company s cost to implement a particular capital project and in some cases used to assess an entire company unlevered cost of capital compares the cost of capital of the project using zero debt as an altern...
when a company needs to raise capital for expansion or other reasons it has two options 1 debt financing which is to borrow money through loans or bond issuances or 2 equity financing which is the issuance of stock 1
the unlevered cost of capital is generally higher than the levered cost of capital because the cost of debt is lower than the cost of equity borrowing money is cheaper than selling equity in the company this is true given the tax benefit related to the interest expense paid on the debt there are costs associated with l...
what is unlevered free cash flow ufcf
unlevered free cash flow ufcf is a company s cash flow before taking interest payments into account unlevered free cash flow can be reported in a company s financial statements or calculated using financial statements by analysts unlevered free cash flow shows how much cash is available to the firm before taking financ...
what ufcf can tell you
unlevered free cash flow is the gross free cash flow generated by a company leverage is another name for debt and if cash flows are levered that means they are net of interest payments unlevered free cash flow is the free cash flow available to pay all stakeholders in a firm including debt holders as well as equity hol...
how do you calculate unlevered free cash flow from net income
free cash flow is calculated as follows free cash flow net income depreciation amortization change in working capital capital expenditure to arrive at unlevered cash flow add back interest payments or cash flows from financing
why is unlevered free cash flow preferred in discounted cash flow dcf analysis
because debt and financing charges are not included in ufcf it provides a more accurate picture of a company s enterprise value ev a measure of a company s total value viewed as a more comprehensive alternative to equity market capitalization this makes it easier to conduct discounted cash flow analysis dcf across diff...
why don t you take out interest expense in ufcf
unlevered means to remove consideration of leverage or debt since firms must pay financing and interest expenses on outstanding debt unlevering removes that consideration from the analysis therefore you do not deduct the interest expense when computing ufcf
what is unlevered free cash flow margin
cash flow margins are ratios that divide a cash flow metric by overall sales revenue ufcf margin would therefore represent the amount of cash available to a firm before financing charges as a percentage of sales the bottom lineunlevered free cash flow ufcf looks at a company s cash flow before considering its obligatio...
what is unlimited liability
unlimited liability refers to the full legal responsibility that business owners and partners assume for all business debts this liability isn t capped and obligations can be paid through the seizure and sale of the owners personal assets without the protection that the popular limited liability business structure prov...
what is a sole proprietorship
a single individual has complete control over a sole proprietorship all business assets are the proprietor s personal assets and the individual is 100 responsible for business debts and liabilities this business structure is most suited to low risk enterprises 1
what is a corporation
a corporation is owned by its stockholders who are completely protected from the business s liabilities forming a corporation requires filing articles of incorporation with the state in which the business is located a small business corporation s corporation is similar but tax obligations pass through from the corporat...
what is a disregarded entity
disregarded entity is a tax term like an s corporation a limited liability business structure allows income and losses to pass down to its owners personal tax returns the business structure itself is disregarded by the irs for tax purposes 7the bottom lineeach business owner is equally responsible for any and all debt...
what is an unlimited liability corporation ulc
an unlimited liability corporation ulc is a corporate structure used in canada that allows shareholders to be liable if the company declares bankruptcy sometimes ex shareholders are also liable depending on how recently they sold their stock despite this disadvantage the structure of a ulc can be preferable in certain ...
what is the unlimited marital deduction
the unlimited marital deduction is a provision in the u s federal estate and gift tax law that allows an individual to transfer an unrestricted amount of assets to their spouse at any time including at the death of the transferor free from tax the unlimited marital deduction is an estate preservation tool because asset...
why is the unlimited marital deduction important
it s important because it provides for a person to transfer any amount of assets to their spouse before or after death without incurring a bill for estate or gift taxes
what s the purpose of the unlimited marital deduction
the provision was adopted to prevent the value of estates from reaching higher tax brackets due to inflation
does the unlimited marital deduction eliminate taxes
actually no it only defers them estate taxes if applicable will apply when the second spouse dies the bottom linethe unlimited marital deduction is an estate planning tool that allows someone before or after death to transfer assets to their spouse without incurring estate or gift taxes on the amount transferred this e...
what is unlimited risk
unlimited risk refers to a situation where there is potential for unlimited losses on a trade or in a particular investment in practice unlimited risk would be practically realized as a total loss or bankruptcy moreover positions that have unlimited risk can be hedged using other market instruments understanding unlimi...
what is an unlisted security
an unlisted security is a financial instrument that is not traded on a formal exchange because it does not meet listing requirements trading of unlisted securities is done on the over the counter otc market and they are often called otc securities market makers or dealers facilitate the buying and selling of unlisted s...
what is an unlimited tax bond
unlimited tax bonds are municipal bonds guaranteed by the full faith and credit of a government that can levy taxes until the debt is repaid the repayment of an unlimited tax bond is based on the issuer s ability to levy taxes on its residents a municipality may increase property taxes accordingly to cover its payments...
what are unlisted trading privileges utp
unlisted trading privileges utp refer to the processes around the trading of a security that is not required to meet certain minimum requirements to be traded on an exchange regulation for utp is detailed in the unlisted trading privileges act of 1994 understanding unlisted trading privileges utp utp were developed in ...
what is an unofficial strike
an unofficial strike is a work stoppage by union members that is not endorsed by the union and that does not follow the legal requirements for striking workers engaging in unofficial strikes have little legal recourse if they are fired and do not receive strike pay an unofficial strike is also called a wildcat strike o...
what is an unpaid dividend
an unpaid dividend is a dividend that is due to be paid to shareholders but has not yet been distributed unpaid dividends exist because of timing differences between the record date the time at which existing shareholders become eligible to receive the upcoming dividend and the payment date when the dividend is actuall...
how unpaid dividends work
to understand unpaid dividends it is helpful to review the four key dates that are part of the dividend payment process the first is the declaration date which is also known as the announcement date this is the date when the company s board of directors announces the upcoming dividend this date is followed by the ex di...
what is an unqualified audit
an unqualified audit reflects business financial statements that are transparent and compliant with generally accepted accounting principles gaap an unqualified opinion is given after thorough research considering all accompanying financial documents any possible remaining discrepancies with the audit would stem from i...
what is an unqualified audit
an unqualified audit reflects business financial statements that are transparent and compliant with generally accepted accounting principles gaap an unqualified opinion is given after thorough research considering all accompanying financial documents any possible remaining discrepancies with the audit would stem from i...
what is an unquoted public company
an unquoted public company also known as an unlisted public company is a firm that has issued equity shares that are no longer traded on a stock exchange otc markets that trade unquoted public companies typically have less transparency than public exchanges understanding unquoted public companiesa public company is a c...
what is an unrealized gain
the term unrealized gain refers to an increase in the value of an asset such as a stock position or a commodity like gold that has yet to be sold for cash as such an unrealized gain is one that takes place on paper as it has yet to be realized an unrealized gain becomes realized once the position is sold for a profit i...
how an unrealized gain works
an unrealized gain occurs when the current price of a security is higher than the price the investor initially paid for the security including any fees associated with the purchase many investors calculate the current value of their investment portfolios based on unrealized values in general capital gains are taxed onl...
when there are unrealized gains present it usually means an investor believes the investment has room for higher future gains otherwise they would sell now and recognize the current gain
recording unrealized gainsunrealized gains are recorded differently depending on the type of security securities that are held to maturity are not recorded in financial statements but the company may decide to include a disclosure about them in the footnotes of its financial statements securities that are held for trad...
what is an unrealized loss
an unrealized loss is a paper loss that results from holding an asset that has decreased in price but not yet selling it and realizing the loss an investor may prefer to let a loss go unrealized in the hope that the asset will eventually recover in price thereby at least breaking even or posting a marginal profit for t...
what is an unrecaptured section 1250 gain
unrecaptured section 1250 gain is an internal revenue service irs tax provision where previously recognized depreciation is recaptured into income when a gain is realized on the sale of depreciable real estate property unrecaptured section 1250 gains are taxed at a maximum 25 tax rate or less in some cases unrecaptured...
how unrecaptured section 1250 gains work
section 1231 assets include all depreciable capital assets held by a taxpayer for longer than one year section 1231 is the umbrella for assets belonging to section 1245 and section 1250 and the latter is what determines the tax rate of depreciation recapture section 1250 relates only to real property such as buildings ...
what are examples of 1250 property
examples of section 1250 property include commercial buildings or residential rental property commercial buildings would be treated as macrs 39 year real property while the residential rental property would be treated as 27 5 year property 67
how can you avoid paying back depreciation recapture
investors can avoid paying tax on depreciation recapture by turning a residential property into a primary residence in addition the taxpayer could conduct a 1031 tax deferred exchange also when an investor passes away their heirs often receive the property on a stepped up basis
how much tax do i pay on unrecaptured section 1250 gain
the maximum rate attributable to unrecaptured section 1250 gains is 25 1
how do i calculate section 1250 recapture
section 1250 is calculated as the lesser of two amounts the first amount is the excess of accelerated depreciation claimed on real property over what would have been the allowable amount under a straight line method the second amount is the gain realized upon disposition
what triggers depreciation recapture
depreciation recapture occurs when there is a difference between the sale price of an asset and the tax basis or adjusted cost basis the difference in these two amounts is recaptured by reporting the difference as ordinary income the bottom linesection 1250 gain is a tax term that refers to the taxable gain from the sa...
what is an unrecorded deed
an unrecorded deed refers to the situation where the title to a property usually real estate is not registered with the appropriate public records department understanding an unrecorded deedan unrecorded deed is a deed for real property that neither the buyer nor the seller has delivered to an appropriate government ag...
what are unregistered shares
unregistered shares also known as restricted stock are securities that are not registered with the securities and exchange commission sec they are usually issued through private placements regulation d offerings or employee stock benefit plans as compensation for professional services or in exchange for funding a start...
what is unrelated business taxable income ubti
unrelated business taxable income ubti is income earned by a tax exempt entity that s not related to the tax exempt purpose of the entity more precisely the internal revenue service irs defines unrelated business taxable income for most organizations as income from a trade or business regularly carried on that is not s...
do i have to pay taxes on ubti
if your tax exempt organization earns unrelated business income over 500 that doesn t fall into the irs s excluded categories then yes you do have to pay taxes on that income 4
what is excluded from unrelated business taxable income
income that s excluded includes dividends interest capital gains royalties and certain other investment income for a complete list please see irs publication 598 4
what happens if ubti tax isn t paid
an exempt organization may be subject to interest and penalty charges if it fails to pay a tax when the tax is due it underpays its tax liability doesn t file a return or files a late return 9the bottom lineunrelated business taxable income ubti is income earned by a tax exempt entity that isn t related to the tax exem...
what is unrestricted cash
unrestricted cash refers to cash that is readily available to be spent for any purpose and has not been pledged as collateral for a debt obligation or other purpose often to satisfy debt covenants companies must maintain a certain level of cash on their balance sheets in case the company defaults or goes into nonpaymen...
when companies report their financial statements unrestricted cash must be listed in the cash and cash equivalents line item of a company s balance sheet
unrestricted cash vs restricted cashrestricted cash is cash held by a company that is not readily available to be spent or used by the company cash might be restricted if the money is required to be held aside to secure a bank loan or credit facility sometimes financial institutions impose credit covenants which includ...
what are unrestricted net assets
unrestricted net assets are donations to nonprofit organizations that have no strings attached that is the assets may be used by the organization for general expenses or any legitimate expenditure most donations are unrestricted net assets however a donor may choose to classify the donation as temporarily restricted ne...
what is an unsatisfied judgment fund
an unsatisfied judgment fund is the amount of money set aside by certain states to cover uncompensated expenses related to bodily injuries sustained in motor vehicle accidents where the responsible driver is unable to pay for the damages the unsatisfied judgment fund is used to help the injured and not at fault driver ...
what is an unscheduled property floater
the importance of having adequate property insurance coverage can t be overstated one way to make sure you have the coverage you need is with an unscheduled property floater an addition to an existing property insurance policy that provides coverage for personal property items that have not been individually itemized o...
what is unsecured
unsecured refers to a debt or obligation that is not backed by any sort of collateral collateral is property or other valuable assets which a borrower offers as a way to secure the loan which is found in secured debt in an unsecured loan the lender will loan funds based on other borrower qualifying factors these qualif...
what is an unsecured creditor
an unsecured creditor is an individual or institution that lends money without obtaining specified assets as collateral this poses a higher risk to the creditor because it will have nothing to fall back on should the borrower default on the loan if a borrower fails to make a payment on a debt that is unsecured the cred...
how an unsecured creditor works
it s uncommon for individuals to be able to borrow money without collateral for example when you take out a mortgage a bank will always hold your house as collateral for the loan in case you default if you take out a loan on an automobile the lender will secure their debt with your car until it s fully paid off one exc...
what is unsecured debt
unsecured debt refers to loans that are not backed by collateral if the borrower defaults on the loan the lender may not be able to recover their investment because the borrower is not required to pledge any specific assets as security for the loan because unsecured loans are considered riskier for the lender they gene...
what is an unsecured loan
an unsecured loan is a loan that doesn t require any type of collateral instead of relying on a borrower s assets as security lenders approve unsecured loans based on a borrower s creditworthiness examples of unsecured loans include personal loans student loans and credit cards investopedia julie bang
how an unsecured loan works
unsecured loans sometimes referred to as signature loans or personal loans are approved without the use of property or other assets as collateral the terms of these loans including approval and receipt are most often contingent on a borrower s credit score typically borrowers must have high credit scores to be approved...
what is considered collateral
collateral is any item that can be taken to satisfy the value of a loan common forms of collateral include real estate automobiles jewelry and other items of value
is a co signed loan considered secured
although having a co signer may help you get approved for a loan it doesn t make the loan secured in the case of a default the lender would require the co signer to repay the loan can bankruptcy eliminate all unsecured loans declaring bankruptcy is a serious undertaking but in most cases it will clear your unsecured lo...
what is an unsecured note
an unsecured note is a loan that is not secured by the issuer s assets unsecured notes are similar to debentures but offer a higher rate of return unsecured notes provide less security than a debenture such notes are also often uninsured and subordinated the note is structured for a fixed period understanding unsecured...
what is unskilled labor
unskilled labor is an outdated term once used to describe a segment of the workforce associated with a limited skill set or minimal economic value for the work performed the correct term is low wage labor according to the center for global development the term unskilled and skilled were derived from institutions polit...
when the term is used to describe a person or employee completing the tasks low wage labor refers to the lack of education or experience the person may have the u s bureau of labor statistics the federal minimum wage is 7 25 although many cities and states have a higher minimum wage for workers 2
certain semiskilled jobs such as administrative assistants can require advanced skill sets that lead them to be categorized as skilled instead of semiskilled positions related termsall jobs from babysitter to biology professor require a skill set however some jobs and careers require higher education special certificat...
what is minimum wage
the federal minimum wage is 7 25 an hour 3
what does skilled labor mean
all jobs take some sort of skill to hold them but skilled labor usually refers to positions which need a very specific skill set to obtain such as computer coding or plumbing skills or a teaching certificate
how many states have higher minimum wages
there are 30 states plus washington d c that offer workers a wage above the federal minimum wage 4the bottom linethe term low skilled worker is an antiquated term not reflective of the present day low wage workers are not low skilled workers low wage workers may have plenty of skills but often the low wage jobs do not ...
what is an unsolicited application
an unsolicited application is a request for life insurance coverage that is made by an individual rather than an insurance agent or broker life insurance companies generally heavily scrutinize this type of application because of the likelihood of self selection which refers to the probability that individuals with high...
what is an unsolicited bid
an unsolicited bid is an offer made by an individual investor or company to purchase a company that is not actively seeking a buyer unsolicited bids may sometimes be referred to as hostile bids if the target company doesn t want to be acquired they usually come up when a potential acquirer sees value in the target comp...
how unsolicited bids work
an unsolicited bid comes about when a potential acquirer takes an interest in a target company and makes a bid to purchase it in this case the bid is the result of the acquirer s initiative rather than at the request of the bid upon company an unsolicited bid to purchase a company not intending to be sold may be follow...
why do companies make unsolicited bids
unsolicited bidding typically occurs when a company wants to purchase another company in order to