When Large,incumbent Firms Buy Up Startup Companies,the Transaction Is Generally

question 58

Multiple Choice

When large,incumbent firms buy up startup companies,the transaction is generally described as a(n) _____.

• A) Non-equity alliance
• B) Equity alliance
• C) Acquisition
• D) Merger

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Definitions:

CCA Class

This refers to a categorization system used for tax purposes to group depreciable assets by their useful life, affecting how capital cost allowance is calculated.

Net Advantage

The overall benefit or profit derived from making a particular investment decision, considering all financial impacts.

Corporate Tax Rate

The percentage of corporate profits that is paid to the government as tax, varying by country and sometimes by the size or type of corporation.

After-Tax Salvage Value

The after-tax salvage value is the net value of a depreciated asset at the end of its useful life, after accounting for taxes on any difference between the sales price and the book value of the asset.