Which of the Following Statements Best Describes Mergers

question 61

Multiple Choice

Which of the following statements best describes mergers?

• 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.

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Definitions:

Privilege

A special right, advantage, or immunity granted or available only to a particular person or group of people.

High Aesthetic

An appreciation for, or creation of, art, beauty, or elements that evoke a profound sense of beauty and emotion.

Gatekeeping Function

The process by which information is filtered for dissemination, whether by media outlets, social media algorithms, or organizational communications.

Same-sex Relations

Romantic or sexual relationships between people of the same gender.