As Far as the Managerial Talent of the Target Is

question 19

Multiple Choice

As far as the managerial talent of the target is concerned:

• A) the manner in which the acquirer plans to deal with the managerial talent will affect the estimated cash flows to be generated by the target.
• B) downsizing will reduce expenses and increase productivity and revenues.
• C) governments of some countries are likely to intervene and prevent the acquisition if downsizing is anticipated.
• D) A and C only
• E) all of the above

---

Definitions:

Statement Of Cash Flows

An accounting document illustrating the impact of adjustments in balance sheet figures and profits on cash and cash equivalents, separated into operating, investing, and financing sectors.

Indirect Method

A technique used in cash flow statements to adjust net income for changes in non-cash accounts to calculate cash flow from operating activities.

Factory Equipment

This refers to the machinery and tools used in the process of manufacturing goods within a factory setting.

Treasury Stock

Represents shares that were once part of the outstanding shares and have been bought back by the corporation.