A(n) ________ Is the Pooling of Interests to Combine Two

question 27

Multiple Choice

A(n) ________ is the pooling of interests to combine two or more firms into one. A(n) ________ is the outright purchase of one firm by another.

• A) acquisition; merger
• B) merger; acquisition
• C) licensing agreement; acquisition
• D) joint venture; strategic alliance
• E) strategic alliance; joint venture

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Definitions:

Bond Ratings

Assessments of the creditworthiness of corporate or governmental bonds, reflecting the issuer's ability to make bond payments, issued by rating agencies.

Creditworthiness

An assessment of a borrower's ability to repay debts in a timely manner, typically considered by lenders before issuing credit.

Investment Grade

A rating that indicates a bond or other security is considered low risk by rating agencies, making it an attractive investment for conservative investors.

Yield To Maturity

The total return anticipated on a bond if it is held until the maturity date, considering all interest payments and the principal.