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:

Prices Double

A situation where the prices of goods or services increase to twice their original amount.

Quasilinear Preferences

Consumer preferences where the utility function is linear in one of the goods, indicating constant marginal utility for that good.

Income Offer Curve

A graphical representation showing how an individual's optimal choice of goods to consume changes as their income changes.

Substitutes

Substitutes are goods or services that can be used in place of each other, where the consumption of one increases, the demand for the other decreases.