Which One of the Following Statements Is Correct

question 27

Multiple Choice

Which one of the following statements is correct?

• A) If an acquisition is made with cash then the cost of that acquisition is dependent upon the acquisition gains.
• B) Acquisitions made by exchanging shares of stock are normally taxable transactions.
• C) The management of an acquiring firm may put itself at risk of losing control of the firm if they do acquisitions using shares of stock.
• D) The stockholders of the acquiring firm will be better off when an acquisition results in losses if the acquisition was made with cash rather than with stock.
• E) Acquisitions based on legitimate business purposes are not taxable transactions regardless of the means of financing used.

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Definitions:

Future Human Resource Demand

The projected need for employees and skills in an organization to meet its objectives in the future.

Delphi Technique

The soliciting of predictions about specified future events from a panel of experts, using repeated surveys until convergence in opinions occurs.

Internal Supply

The availability of existing employees who can be promoted, transferred, or otherwise moved to fill open positions within an organization.

Markov Analysis

A statistical technique that uses probabilities to predict future states in a system based on its current state, often used for decision making and forecasting.