Studies on Merger Activity Across Industries Suggest That

question 62

Multiple Choice

Studies on merger activity across industries suggest that:

• A) the stock price for the buying ?rm rises sharply post a merger.
• B) almost all ?rms and industries have a tendency to deliver post-merger bene?ts.
• C) mergers are relatively risk-free strategies for ?rms.
• D) mergers increase ?rm size and can boost managers' pay.

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Definitions:

Bonuses

Additional compensation given to employees as a reward for their performance or for meeting certain objectives.

Cost Reduction

Cost reduction involves strategies and actions taken to decrease expenses and improve efficiency in a business or operation, enhancing overall profitability.

Canadian Organizations

Entities or groups operating within Canada, bounded by its legal, cultural, or geographic context.

Merit Pay Plans

Compensation strategies that reward employees based on their performance, skills, or achievements, rather than seniority or job title alone.