Which of the Following Is Not True of an Acquisition

question 21

Multiple Choice

Which of the following is not true of an acquisition of stock or tender offers?

• A) No stockholder meetings need to be held.
• B) No vote is required.
• C) The bidding firm deals directly with the stockholders of the target firm.
• D) In most cases, 100% of the stock of the target firm is tendered.

---

Definitions:

Depreciating Assets

Assets that lose value over time due to use, wear and tear, or obsolescence, such as machinery, vehicles, and buildings.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, reducing its book value on the balance sheet.

Historical Cost

The original monetary value of an asset or investment, as recorded on the financial statements at the time of purchase or acquisition.