In a Merger or Acquisition, a fiRm Should Be Acquired

question 27

Multiple Choice

In a merger or acquisition, a firm should be acquired if it:

• A)generates a positive net present value to the shareholders of an acquiring firm.
• B)is a firm in the same line of business, in which the acquirer has expertise.
• C)is a firm in a totally different line of business which will diversity the firm.
• D)pays a large dividend which will provide cash pass through to the acquiror.
• E)None of the above.

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Definitions:

Disrupting Behavior

Actions or behaviors that interfere with the normal flow of operations in a given environment, such as a classroom or workplace.

Sleep

A natural, periodic state of rest for the mind and body, characterized by altered consciousness and reduced sensory activity.

Depression

A mood disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Heart Rate

The number of heartbeats per unit of time, typically expressed as beats per minute (BPM).