If Q Corporation Acquires P Corporation in Exchange for Its

question 22

Multiple Choice

If Q corporation acquires P Corporation in exchange for its stock, and P shareholders own more than 50 percent of the outstanding stock of Q corporation:

• A)P and Q must disband within one year.
• B)A reverse acquisition has taken place.
• C)Q Corporation will always be the parent company.
• D)Q Corporation becomes a shell corporation.

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Definitions:

Differentiated Needs

The concept that individuals or groups have unique requirements or preferences that need specific attention or solutions.

Cost Leadership

A business strategy focused on achieving the lowest operational costs within an industry to offer lower prices than competitors.

Global Integration

The process by which a company combines different global activities so the different parts of the corporation use the same methods.

Per-Unit Costs

The average cost associated with producing or acquiring a single unit of a product or service.