Stone Inc Has Just Been Through a Friendly Takeover

question 133

Short Answer

Stone Inc. has just been through a friendly takeover. This means that
these two firms are in a completely unrelated businesses merge.
two firms agree to join together.
the acquired company welcomes the acquisition because it may need cash or other benefits which it believes will be available from the other firm.
the organization will buy back their own stock from an investor who threatened a hostile takeover.
the two firms were direct competitors before the merger and now will not compete with each other after the merger.

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Definitions:

General Journal

A book or digital record used in double-entry bookkeeping to chronicle all financial transactions in chronological order, allowing for the tracking of all company transactions.

Accounting System Design

The process of defining the structure, components, and processes of an accounting system tailored to meet specific financial reporting and management needs.

Internal Controls

Systems and procedures implemented by a company to ensure the integrity of financial and accounting information.

Information Processing

The collection, manipulation, storage, retrieval, and classification of information.