If the Acquirer Wants the Target Firm's Managers to Stay

question 13

Multiple Choice

If the acquirer wants the target firm's managers to stay in place,at least for a stated period of time,the acquirer should employ the tactic known as a

• A)golden parachute.
• B)crown jewel.
• C)golden handcuff.
• D)captured knight.
• E)white knight.

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Definitions:

Operating Income

The profit realized from a business's core operational activities, excluding deductions of interest and tax.

Unit Selling Price

The amount of money charged for each individual unit of a product or service.

Contribution Margin Ratio

A financial ratio that measures the profitability of a product by subtracting variable costs from sales and dividing the result by total sales.

Operating Income

The profit realized from a business's operations after subtracting operating expenses from gross profit.