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Which of the Following Factors Influence the Acquiring Firm's Choice

question 26

Multiple Choice

Which of the following factors influence the acquiring firm's choice between merger and an acquisition of stock?
I.Shareholders are dealt with directly to bypass target management and board of directors.
II.In a tender offer,usually some minority shareholders do not tender,stopping complete firm absorption.
III.Target management may be unfriendly and resist an offer.Resistance often increases the acquisition price.


Definitions:

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or business activity.

Insurance Premiums

The amount paid for insurance policies, covering risks over a period.

Direct Materials

Primary components used in the manufacturing of products, which are directly traceable to the finished product.

Electricity

A form of energy resulting from the existence of charged particles, widely used for lighting, power, and other applications.

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