Which of the Following Statements Is True

question 63

Multiple Choice

Which of the following statements is true?

• A)When a firm's assets are acquired, the liabilities are transferred to the vendor.
• B)The purchase of a target company's shares as a method of acquiring a firm's assets is attractive when the target company has contingent liabilities outstanding.
• C)With an acquisition, both assets and liabilities are taken over by the new parent.
• D)The purchase of shares must take place soon after the announcement of the intent to merge, thereby minimizing the premium over current market price that has to be paid.

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Definitions:

La Venta

An ancient Olmec civilization site in Mexico, known for its colossal stone heads, ceremonial complexes, and as a center for Olmec culture from 1200 BCE to 400 BCE.

Olmec Culture

An early Mesoamerican civilization known for its monumental sculpture, particularly the colossal stone heads, and its influence on later cultures.

Classic Maya

Refers to the period and region in ancient Mesoamerica known for its advancements in art, architecture, astronomy, and hieroglyphic writing.

Belize

is a country on the eastern coast of Central America, known for its diverse ecosystems, barrier reef, and Mayan historical sites.