Which of the Following Is an Example of a Merger

question 34

Multiple Choice

Which of the following is an example of a merger?

• A) Brown Electronics and Kelvin Data Systems form a new company,and Brown and Kelvin cease to exist.
• B) Brown Electronics buys Kelvin Data Systems and continues to operate as Brown Electronics.
• C) Brown Electronics buys Kelvin Data Systems,and Kelvin operates as a subsidiary of Brown.
• D) Brown completes a hostile takeover of Kelvin.
• E) None of these choices

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Definitions:

Investing Activities

Financial actions related to acquiring or disposing of long-term assets and other investments.

Long-term Borrowing

Debt obligations or loans that are due to be repaid over a period longer than one year, often used for large capital investments.

Stock Issuances

The process by which a company distributes its shares to investors, either through public offerings or private placements.

Equity

Equity represents the value that would be returned to a company's shareholders if all of the assets were liquidated and all the company's debts were paid off.