For Certain Transactions, the Threshold for Pre-Merger Notification Is Met

question 43

Multiple Choice

For certain transactions, the threshold for pre-merger notification is met if

• A)either the value of the target firm or the assets being acquired exceeds $40 million, or the combined revenues of the entities involved exceed $400 million per year.
• B)the entities involved are engaged in bid-rigging and their combined revenues exceed $400 million per year.
• C)the entities involved are worth more than $100 million or their combined revenues exceed $400 million per year.
• D)the value of the target firm or the assets being acquired exceeds $87 million, and the combined assets or revenues of the entities involved and their affiliates exceed $400 million per year.
• E)there is an abuse of dominant position and the combined revenues of the entities involved exceed $400 million per year.

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Definitions:

Credit Entry

An accounting entry that increases a liability or equity account, or decreases an asset or expense account, recorded on the right side of an account.

Asset Accounts

Accounts on a balance sheet that represent the resources owned by a company, which have value and can provide future benefits.

Common Stock

Equity ownership in a corporation, entitling holders to vote at shareholder meetings and to receive dividends.

T-account

A visual representation used in accounting to depict the debit and credit sides of an account.