Which One of the Following Statements Correctly Applies to a Merger

question 72

Multiple Choice

Which one of the following statements correctly applies to a merger?

• A) The acquiring firm does not have to seek approval for the merger from its shareholders.
• B) The shareholders of the target firm must approve the merger.
• C) The acquiring firm will acquire the assets but not the debt of the target firm.
• D) The merged firm will have a new company name.
• E) The titles to individual assets of the target firm must be transferred into the acquiring firm's name.

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Definitions:

Automated Equipment

Equipment that operates with minimal human intervention, using technology to perform tasks that would otherwise require manual effort.

Attractive Investment

An investment that is appealing due to its potential for favorable returns or its alignment with investment criteria.

Simple Rate

A basic method for calculating interest or return, often expressed as a percentage over a period of time.

Cash Operating

Cash operating activities involve the cash inflows and outflows directly related to the core business operations, such as revenue from sales and payments to suppliers.