Which of the Following Statements Is Most CORRECT

question 32

Multiple Choice

Which of the following statements is most CORRECT?

• A) A conglomerate merger is one where a firm combines with another firm in the same industry.
• B) Regulations in the United States prohibit acquiring firms from using common stock to purchase another firm.
• C) Defensive mergers are designed to make a company less vulnerable to a takeover.
• D) The equity residual method values a target firm by discounting residual cash flows at the acquiring firm's overall cost of capital reflecting the combined firm's post-merger capital structure.
• E) A financial merger occurs when the operations of the firms involved are integrated in the hope of achieving synergistic benefits.

---

Definitions:

Search Engines

Search Engines are software systems designed to carry out web searches, allowing users to find information on the internet based on entered queries.

Résumé

A document summarizing an individual's work experience, education, skills, and achievements, used for job applications.

Skill

A specific ability or proficiency acquired through training or experience that allows for the effective and efficient performance of tasks.

Capability

An individual's or organization's potential or ability to achieve certain outcomes or perform certain tasks effectively.