What Does the Term "Merger" Indicate

question 20

Multiple Choice

What does the term "merger" indicate?

• A) A larger business has absorbed a smaller business into its operations.
• B) A larger business has taken control of a smaller one against the wishes of the smaller company's management.
• C) Shareholders of a one business no longer have a financial stake in the combined enterprise.
• D) There is mutual agreement between two businesses to combine.
• E) The businesses being combined are run independently as separate business units.

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Definitions:

Total Compensation Cost

It encompasses the complete value of all compensatory payments and benefits provided to employees, including salaries, bonuses, and benefits.

Fair Value

Fair value is the estimated market price of an asset or liability, reflecting its current value in an orderly transaction between willing market participants.

Vested Options

Stock options granted to an employee that the employee has the right to exercise, contingent upon fulfilling certain conditions such as employment duration.