Which One of These Statements Is Correct

question 18

Multiple Choice

Which one of these statements is correct?

• A)The titles to the target firm's individual assets must be transferred to the acquirer in a merger.
• B)If a target firm's managers oppose an acquisition,the acquisition cannot occur.
• C)The acquisition of a target firm's assets can be done without the approval of the target firm's shareholders.
• D)A tender offer must be accepted by all of the target firm's shareholders to be effective.
• E)An acquisition of stock in a target firm may later be followed with a formal merger.

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Definitions:

Budgeted Balance Sheet

A financial statement that projects the balances of assets, liabilities, and equity accounts at the end of a future period based on planned activities and events.

Financial Budget

A financial plan that outlines expected revenues, expenses, and cash flows over a specific period.

Direct Materials Budget

A financial plan that estimates the raw materials required for production and the expected cost of these materials over a specific period.

Direct Labor Budget

A financial plan that estimates the cost of the labor needed to meet production goals, including wages and hours.