Financial Considerations, Such as an Acquirer Believing the Target Is

question 25

True/False

Financial considerations, such as an acquirer believing the target is undervalued, a booming stock market or falling interest rates, frequently drive surges in the number of acquisitions.

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Definitions:

Balance of Payments

A record of all economic transactions between the residents of a country and the rest of the world in a given period of time, which includes the trade balance, foreign investments, and loans.

Flexible Exchange Rates

A currency system where the value of a currency in relation to others is determined by the foreign exchange market without direct government control.

Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.

Unemployment

The situation when individuals who are capable of working and willing to work cannot find employment.