Which of the Following Is the Best Definition of a Merger

question 314

Multiple Choice

Which of the following is the best definition of a merger?

• A) The complete absorption of one company by another, where the acquiring firm retains its identity and the acquired firm ceases to exist as a separate entity.
• B) Going-private transactions in which a large percentage of the money used to buy the stock is borrowed. Often, incumbent management is involved.
• C) Typically an agreement between firms to create a separate, co-owned entity established to pursue a joint goal.
• D) A targeted stock repurchase where payments are made to potential bidders to eliminate unfriendly takeover at-tempts.
• E) All publicly owned stock in a firm is replaced with complete equity ownership by a private group.

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Definitions:

Legal Definition

A formal and authoritative description or interpretation of a legal term or concept as established by laws or court decisions.

Competent

Having the necessary ability, knowledge, or skill to do something successfully.

Unfit To Stand Trial

A legal determination that a person is not able to participate in their defense due to a mental disorder or incapacity.

Mental Disorder

A condition characterized by significant disturbance in an individual's behavior, emotional regulation, or thought processes.