Which of the Following Is FALSE About the Friendly Acquisition

question 84

Multiple Choice

Which of the following is FALSE about the friendly acquisition process?

• A)A friendly acquisition involves estimating the value of the firm using information provided by the firm.
• B)The due diligence process is the investigation of the correctness of information provided by the target.
• C)The no-shop clause prohibits the acquiring firm to look into other target firms.
• D)The confidentiality agreement prohibits the disclosure of private information about the target firm.

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Definitions:

Tax

An obligatory fiscal charge or another form of assessment applied to a taxpayer by a government body to finance government operations and diverse public expenses.

Deadweight Loss

Deadweight loss is an economic inefficiency that arises when a market outcome is not optimal, resulting in a loss of total surplus due to factors like taxes or monopolies.

Supply

The total amount of a product or service that is available for purchase at any given time.

Elastic

Describing a situation in economics where the demand or supply for a good or service significantly changes in response to changes in price.