Which of the Following Is Not Correct Concerning a Proposed

question 69

Multiple Choice

Which of the following is not correct concerning a proposed merger of firms?

• A) The acquired firm will cease to exist.
• B) Shareholders of the acquired firm may receive securities in the acquiring firm.
• C) Mergers are sometimes combinations of equals.
• D) Shareholder approval to merge is not required.

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Definitions:

Safety Inventory

A buffer stock kept to protect against variability in demand or supply, ensuring sufficient product availability.

Capacity

The maximum output that a system, facility, or machine can produce under normal conditions over a given period.

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Computing Power

The capacity of a computer system to perform or process data, usually measured in terms of speed and computational ability.