Which of the Following Statements Is Most CORRECT

question 13

Multiple Choice

Which of the following statements is most CORRECT?

• A) Regulations in the United States prohibit acquiring firms from using common stock to purchase another firm.
• B) Defensive mergers are designed to make a company less vulnerable to a takeover.
• C) Hostile mergers always create value for the acquiring firm.
• D) In a tender offer, the target firm's management always remain after the merger is completed.
• E) A conglomerate merger is one where a firm combines with another firm in the same industry.

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Definitions:

Patents

Legal documents granting exclusive rights to inventors for their inventions, protecting them from unauthorized manufacturing or selling.

Copyrights

Legal rights granted to the creators of original works, protecting them against unauthorized use or reproduction.

Income Statement

A financial statement that shows a company's revenues and expenses over a specified period, ultimately revealing the company's net profit or loss.

Total Revenue

The full amount of income generated by the sale of goods or services before any costs or expenses are deducted.