Which of the Following Statements Is Most CORRECT

question 11

Multiple Choice

Which of the following statements is most CORRECT?

• A) If a company that produces military equipment merges with a company that manages a chain of motels,this is an example of a horizontal merger.
• B) A defensive merger is one where the firm's managers decide to merge with another firm to avoid or lessen the possibility of being acquired through a hostile takeover.
• C) Acquiring firms send a signal that their stock is undervalued if they choose to use stock to pay for the acquisition.
• D) In a liquidation,the firm's existing stockholders are given new stock representing separate ownership rights in the division that was divested.The division establishes its own board of directors and officers,and it becomes a separate company.
• E) If there are no synergistic benefits to be gained from a merger,the acquiring company will stop its plans for the merger.However,if synergistic gains are large,plans for the merger will continue.In fact,the greater the synergistic gains,the smaller the gap between the target's current price and the maximum the acquiring company could pay because of the acquiring company's upper hand in the merger.

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Definitions:

Blind Area

An aspect of our personality or behaviors not known to oneself but visible to others, part of the Johari window concept in psychology.

Johari Window

A model used to improve understanding between individuals within a group, consisting of four quadrants that represent aspects of the self based on known or unknown information to oneself or others.

Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group.

360-degree Feedback

A comprehensive feedback mechanism where an employee receives confidential, anonymous feedback from their supervisor, peers, subordinates, and sometimes even customers.