Hostile Takeovers Are Less Common in Canada Because

question 105

Multiple Choice

Hostile takeovers are less common in Canada because:

• A) Canadian use of IFRS makes companies appear less profitable.
• B) share ownership is not widely held.
• C) companies have greater regulatory requirements.
• D) the government does not allow hostile takeovers.

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Definitions:

Retained Earnings

Retained earnings are the portion of a company's profits that is kept or retained and not paid out as dividends to shareholders but reinvested in its core business or to pay debt.

Shareholders'

Individuals or entities that own one or more shares of stock in a public or private corporation, granting them certain rights such as voting on corporate matters.

Reinvested Profit

Earnings that a company plows back into itself to fund growth, debt repayment, or asset purchases rather than distributing to shareholders as dividends.

Income Statement

A financial statement that shows a company’s revenues and expenses over a specific period, providing insight into its profitability.