Which of the Following Refers to a Merger in Which

question 53

Multiple Choice

Which of the following refers to a merger in which some shareholders are required to surrender their shares in the disappearing corporation for cash?

• A) Illegal merger
• B) Termination merger
• C) Surrender consolidation
• D) Freeze-out merger

---

Definitions:

Cost of Overselling

The expense or loss a company faces when more products are sold than can be supplied, leading to stockouts, potential customer dissatisfaction, and extra costs to fulfill orders.

Unsold Unit

An item that remains in inventory without being purchased by customers.

Selling Season

A specific period during the year in which sales activity and demand for certain products or services significantly increase.

Cost of Overstocking

Expense incurred from holding too much inventory, including storage costs, decreased product value, and potential obsolescence.