Which of the Following Statements Is Not Correct

question 24

Multiple Choice

Which of the following statements is not correct?

• A) A few states levy an unemployment tax on the employee that must be withheld from the employee's pay.
• B) One of the purposes of the unemployment insurance program is to stabilize employment and reduce unemployment.
• C) The reduction of state unemployment taxes because of favorable experience ratings reduces the credit allowable against the federal unemployment tax.
• D) The unemployment insurance program is a federal program.

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Definitions:

White Knight

When a firm is an acquisition target by an unattractive suitor, a more desirable acquirer is known as a white knight. (The original suitor may be known for particularly ruthless treatment of acquired companies.)

Tender Offers

A public proposal by a person or company inviting shareholders to sell their shares at a specified price.

Greenmail

To avoid an unfriendly acquisition, a firm may buy shares owned by a potential acquirer at a price above the market price of the stock. The above-market payment is greenmail.

Horizontal Merger

A business consolidation that occurs between firms operating in the same industry, often aiming to increase market share.