Which One of the Following Statements Is Correct

question 5

Multiple Choice

Which one of the following statements is correct?

• A)The bootstrapping effect refers to a bidder with weaker corporate governance benefiting from the better corporate governance of its target.
• B)The positive spillover effect refers to the improvement in the target's corporate governance as a result of it being taken over by a bidder with better corporate governance.
• C)The negative spillover effect refers to the worsening of the target's corporate governance as a result of it being taken over by a bidder with weaker corporate governance.
• D)All of the above.

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Definitions:

Realized Gain

The profit earned from the sale of an asset, which has been converted from an unrealized gain into cash or an equivalent.

Available-For-Sale

A classification for securities that are not held to maturity or for trading purposes, with unrealized gains or losses reported in equity.