In April 2017, PetSmart Agreed to Make the Largest E-Commerce

question 66

Multiple Choice

In April 2017, PetSmart agreed to make the largest e-commerce acquisition in history to date, putting a deal in place to snatch up fast-growing pet food and product site Chewy. com for $3.35 billion. The acquisition premium for this particular deal can be calculated as the amount by which the price PetSmart offered for Chewy.com exceeded the

• A)fair market value of similar companies in the same geographic locale as Chewy.com.
• B)preacquisition market value of Chewy.com.
• C)comparable value of similar companies to Chewy.com within the same market.
• D)amount paid as a down payment for Chewy.com that was to be held in escrow until closing.
• E)difference between the amount that was offered for Chewy.com and the amount that was held in escrow to complete the deal.

---

Definitions:

Public Policy

Comprises government actions and procedures intended to solve societal issues and promote the general welfare.

Privity of Contract

A legal doctrine that stipulates that only parties in a contract have the right to sue or be sued on the contract terms.

Right to Privacy

The right of individuals to keep their personal matters and relationships confidential and free from public view or intrusion.

Bank's Sale

A sale conducted by a bank, usually involving assets owned by the bank or foreclosed properties.