Target Managements That Resist Mergers Usually Claim the Offer Is

question 41

Multiple Choice

Target managements that resist mergers usually claim the offer is not in the best interest of stockholders because the price offered is too low.  However, they may be:

• A)trying to get the acquirer to raise the offer.
• B)trying to get the acquirer to offer them bonuses to support the proposal.
• C)concerned about their jobs because target managements usually lose power after mergers.
• D)concerned that bondholders are being frozen out of the deal.

Analyze the equilibrium conditions in a market and predict changes in price and quantity based on shifts in supply and demand.

Interpret graphical representations of market conditions and the effects of market adjustments.

Identify the effects of external shocks (such as income changes or technological advancements) on market equilibria.

Determine the outcomes of excess supply or demand in market equilibrium.

---

Definitions:

Credit Charges

Fees or interest rates applied to the balance of borrowed funds or extended credit.

Consumer Protection

Measures and regulations designed to safeguard buyers of goods and services against fraudulent or unfair practices.

Substantial Liability

Refers to a significant financial or legal obligation that could have a major impact on an individual's or entity's financial health.

Technological Complexity

The degree of difficulty associated with the development, integration, and use of technology, often linked to its innovation and application.