Which of the Following Is NOT a Correct Statement of a Reason

question 117

Multiple Choice

Which of the following is NOT a correct statement of a reason why computation of NPV in a merger or an acquisition may be complicated?

• A) Sometimes poison pills or greenmail provisions may exist
• B) Acquisitions are an important control device for stockholders
• C) The tax, accounting, and legal issues involved are lengthy
• D) Mergers and acquisitions are sometimes friendly
• E) The benefits of a merger or acquisition sometimes depend on strategic fits

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Definitions:

Business Transactions

Economic events or conditions that affect the financial position of a company, which are recorded as entries in accounting records.

Time Period

A specific duration during which financial transactions are recorded and reported in financial statements.

Quality

The degree to which a product or service meets the requirements and expectations of customers.

Consistency

Use of the same accounting principles and methods from year to year within a company.