Which of the Following Statements Regarding Hostile Takeovers Is True

question 46

Multiple Choice

Which of the following statements regarding hostile takeovers is true?

• A)The U.S. is the only country that permits hostile takeovers.
• B)In 2006, a law was passed prohibiting hostile takeover activity in the U.S.
• C)From 1983 to 1989, hostile takeovers represented about 50% of the total activity in any given year.
• D)Hostile takeovers, though rare, can be very large.

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Definitions:

Common Fixed Expenses

Expenses that remain constant for a business across different projects, products, or divisions and do not change with the level of production or sales.

Segmented Income Statement

A financial statement that breaks down revenues, cost of goods sold, and expenses by different segments of a business, such as product lines or geographical areas.

Contribution Format

A financial reporting format that focuses on distinguishing between fixed and variable costs and calculating the contribution margin.

Common Fixed Expenses

Overhead costs shared by multiple business units or product lines, which are not attributable to any single unit or product.