Which of the Following Statements Regarding Reverse Mergers Is True

question 29

Multiple Choice

Which of the following statements regarding reverse mergers is true?

• A)In a reverse merger, money flows out of the public sector into the private sector.
• B)In a reverse merger, a large, publicly-held company spins off one of its divisions, which itself becomes a publicly-traded company.
• C)A reverse merger is a method of making a publicly-held firm private once again.
• D)In a reverse merger, a large, privately-held firm merges with a smaller firm that is publicly-held.

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Definitions:

Pygmalion Effect

The phenomenon where higher expectations lead to an increase in performance; a form of self-fulfilling prophecy.

Self-fulfilling Prophecy

A belief or expectation that influences one's behavior in a way that causes the belief to become true.

Selective Perception

The process by which individuals perceive what they want to in media messages while ignoring opposing viewpoints.

Response Characteristic

A term often related to how individuals react to certain stimuli, highlighting the specific ways in which responses are manifested.