Consider the Following Two Statements: (I) in a Merger, the Bidding

question 40

Multiple Choice

Consider the following two statements: (i) In a merger, the bidding firm can deal directly with the shareholders of a target firm via a tender
Offer.
(ii) Complete absorption of one firm by another requires a merger.

• A)(i) is correct, (ii) is incorrect.
• B)(ii) is correct, (i) is incorrect.
• C)Both (i) and (ii) are correct.
• D)Both (i) and (ii) are incorrect.
• E)(i) and (ii) only hold in a hostile takeover.

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Definitions:

Equivalent Unit

A concept used in cost accounting to express the amount of work done on incomplete units in terms of fully completed units.

Weighted-Average Method

A cost accounting method that calculates the cost per unit of inventory based on the average cost of all similar items in stock, regardless of purchase date.

Mixing Department

It is a section in manufacturing where raw materials are combined or processed together to create a mixture or product, critical in industries like food, pharmaceuticals, and chemicals.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, quantifying them in terms of fully completed units of output.