Assume the Shareholders of a Target Firm Benefit from Being

question 66

Multiple Choice

Assume the shareholders of a target firm benefit from being acquired in a stock transaction.Given this,these shareholders are most apt to realize the largest benefit if the:

• A)acquiring firm has the better management team and replaces the target firm's managers.
• B)management of the target firm is more efficient than the management of the acquiring firm which replaces them.
• C)management of both the acquiring firm and the target firm are as equivalent as possible.
• D)current management team of the target firm is kept in place even though the managers of the acquiring firm are more suited to manage the target firm's situation.
• E)current management team of the target firm is technologically knowledgeable but yet ineffective.

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Definitions:

Business Associations

Represent the interests of organisations in an industry or region.

Occupational Health

A field of healthcare that focuses on the physical and mental well-being of employees in the workplace by preventing and addressing injuries and illnesses that may arise from work activities.

Profit Margins

The percentage of revenue remaining after deducting the cost of goods sold, symbolizing the financial health and profitability of a business.

Welfare Facilities

Denotes amenities and services provided by employers to improve the well-being and working conditions of employees.