When a Merger of Two Firms Is Achieved by One

question 70

Multiple Choice

When a merger of two firms is achieved by one firm,automatically assuming all the assets and all the liabilities of the other firm,such a merger requires:

• A)no shareholder meeting to vote.
• B)the approval of at least 50% of the stockholders (or as specified by corporate charters or state laws)of each firm.
• C)that the management of the two firms be tossed out.
• D)that the target firm search for alternative suitors.

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Definitions:

Experimental Research

A research method that investigates causal relationships by manipulating one variable to see its effect on another, under controlled conditions.

Independent Variable

The variable that is manipulated in an experiment to test its effects on the dependent variable.

Dependent Variable

A variable in an experiment that is expected to change in response to manipulations of the independent variable.

Correlational Study

A research methodology that examines the relationship or association between two or more variables without determining causal direction.