Which of the Following Factor(s)influence(s)the Acquiring Firm's Choice Between Merger

question 15

Multiple Choice

Which of the following factor(s) influence(s) the acquiring firm's choice between merger and an acquisition of stock?
I.Shareholders are dealt with directly to bypass target management and board of directors.
II.In a tender offer, usually some minority shareholders do not tender, stopping complete firm absorption.
III.Target management may be unfriendly and resist an offer. Resistance often increases the acquisition price.

• A)I only
• B)II only
• C)III only
• D)I, II, and III

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Definitions:

Acid-Test Ratio

A financial metric used to determine a company's short-term liquidity position by comparing its most liquid assets, excluding inventories, against its short-term liabilities.

Financial Information

Data related to the financial status of an entity, including balance sheets, profit and loss statements, and cash flow reports.

Days' Sales in Inventory

A financial metric measuring the average number of days a company takes to turn its inventory into sales.

Financial Information

Data regarding the financial performance and condition of an entity, including income statements, balance sheets, and cash flows.