Which of the Following Does NOT Correctly Complete This Sentence

question 49

Multiple Choice

Which of the following does NOT correctly complete this sentence: If cash is used to finance an acquisition, then _____________________.

• A) the shareholders of the acquiring firm will be better off than if stock were used regardless of whether or not the acquisition is a success in terms of value
• B) the cost of the acquisition will not depend on the acquisition gains
• C) the selling firm's shareholders will not fully participate in the gains of the merger
• D) the transaction is usually taxable
• E) control of the acquiring firm will not be affected

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Definitions:

Valued Policy

An insurance policy that pays a predetermined amount to the insured in the event of a total loss, regardless of the value of the lost property.

Fair Market Value

The price that property would sell for on the open market between a willing buyer and a willing seller.

Insure The House

Entering into a policy agreement with an insurance company to provide protection against damages or losses to one's home, typically against risks like fire, theft, or natural disasters.

Insurable Interest

A stake in the preservation of a subject against loss or damage, legally necessary for an individual to purchase insurance on a life or property.