When a Merger of Two Firms Is Achieved by One

question 16

Multiple Choice

When a merger of two firms is achieved by one firm, automatically assuming all the assets and all the liabilities of the other firm, such a merger requires

• A)no shareholder meeting to vote.
• B)the approval of at least 50 percent of the stockholders (or as specified by corporate charters or state laws)of each firm.
• C)that the management of the two firms be tossed out.
• D)that the target firm search for alternative suitors.

---

Definitions:

Indifference Curve

A graph representing combinations of goods or services between which a consumer is indifferent, showing preference levels.

Marginal Utilities

The added enjoyment or usefulness a consumer gets upon consuming an extra unit of a good or service.

Marginal Utility

The additional gain in enjoyment or utility that an individual experiences from consuming one more unit of a good or service.

Indifference Curve

A graphical representation in economics of all combinations of goods that provide a consumer with the same level of satisfaction or utility.