One Company Wishes to Acquire Another

question 74

Multiple Choice

One company wishes to acquire another.Which of the following forms of acquisition does not require a formal vote by the shareholders of the acquired firm?

• A)Merger
• B)Acquisition of equity
• C)Acquisition of assets
• D)Consolidation
• E)All of the above require a formal vote.

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Definitions:

Loan Proceeds

The amount of money that is disbursed to the borrower from the lender minus any fees or costs associated with the loan.

Rate of Return

The profit or deficit incurred on an investment throughout a designated period, shown as a percentage of the investment's starting value.

Savings Account

A savings account is a bank account where you can store money securely while earning interest on your balance.

EAR

Effective Annual Rate (EAR) is a measure of interest that takes into account the effects of compounding over a given period.