The Difference Between the Current Market Price of a Target

question 58

Multiple Choice

The difference between the current market price of a target firm's shares and the price a potential acquirer offers to pay for those shares is known as an

• A) acquisition premium.
• B) acquisition discount.
• C) acquisition margin.
• D) acquisition price.

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Definitions:

Nonrelevancy Error

An error made during the employee appraisal process where information irrelevant to job performance influences the evaluation.

First-impression Error

is a bias in evaluation or judgment where early information or initial impressions unduly influence someone's perception of another person or situation.

On-the-job Training

A method of professional development where employees acquire skills and knowledge during the course of their regular work activities, often under the guidance of experienced colleagues.

Vestibule Training

A training method where employees are trained in a separate space (a 'vestibule') using the equipment and tools that they will use in their actual work, but within a simulated work environment.