Describe the Three Basic Legal Procedures That One fiRm Can

question 15

Essay

Describe the three basic legal procedures that one firm can use to acquire another firm, and briefly discuss the advantages and disadvantages of each.

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Definitions:

Public Companies

Companies that issue publicly traded debt or equity securities.

Sarbanes-Oxley Act

U.S. legislation passed in 2002 aimed at protecting investors from fraudulent financial reporting by corporations.

Public Exchanges

Marketplaces where stocks, bonds, and other securities are traded among investors.

Cash Discounts

Reductions in the amount due by a customer if payment is made within a specified period, used as an incentive for quick payment.