A(n)_____ Is a Transaction in Which a Firm Gains Control

question 80

Multiple Choice

A(n) _____ is a transaction in which a firm gains control of another firm by purchasing its stock, exchanging the stock for its own, or, in the case of a private firm, paying the owners a purchase price.

• A)standstill agreement
• B)demerger
• C)strategic alliance
• D)merger
• E)acquisition

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Definitions:

Interest-Sensitive Goods

These are goods whose demand fluctuates in response to changes in interest rates, often because they involve large financial investments or credit to purchase.

Financial Crisis

A situation where financial assets suddenly lose a significant part of their nominal value, often leading to bankruptcies and economic downturns.

Regulatory Changes

Modifications or updates in laws and regulations that affect how businesses operate and compete.

Property Rights

The rights to use, control, and obtain the benefits from a good or resource.