Conglomerate Takeover Can Be Best Defined as a Takeover Of

question 7

Multiple Choice

Conglomerate takeover can be best defined as a takeover of:

• A)a target company operating in the same line of business as the acquiring company.
• B)a target company operating in a different line of business.
• C)a company which is a supplier of goods to the acquiring company.
• D)a target company in an unrelated type of business.

---

Definitions:

Contingent Rentals

Lease payments that are not fixed and determined but depend on a future event or condition.

Operating Lease

A lease agreement allowing the lessee to use an asset for a shorter period than the asset's useful life without ownership rights.

Implicit Interest Rate

The interest rate that equates the present value of lease payments to the fair value of the leased asset, often used in lease agreements.