The Shareholders of a Target fiRm Benefit the Most When

question 79

Multiple Choice

The shareholders of a target firm benefit the most when:

• A)an acquiring firm has the better management team and replaces the target firm's
• Managers.
• B)the management of the target firm is more efficient than the management of the acquiring
• firm which replaces them.
• C)the management of both the acquiring firm and the target firm are as equivalent as
• Possible.
• D)their current management team is kept in place even though the managers of the
• Acquiring firm are more suited to manage the target firm's situation.
• E)their management team is technologically knowledgeable yet ineffective.

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Definitions:

Shares

Units of ownership interest in a corporation or financial asset.