For Acquisitions, Which Purchaser Type Values the Resulting Firm Based

question 59

Multiple Choice

For acquisitions, which purchaser type values the resulting firm based on estimated cash flows as they are at present, with only minor adjustments?

• A)Strategic investors
• B)Financials
• C)Passive investors
• D)Managers

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Definitions:

Fixed Costs

Fixed costs are business expenses that do not change with the level of goods or services produced by the business, such as rent, salaries, and insurance.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as materials and labor directly involved in manufacturing a product.

Units

A measure of quantity used to express the amount of a product, service, or resource, often used in production and inventory contexts.

Pretax Income

Income earned by a company before taxes have been deducted.