Which One of the Following Is False Concerning a Proposed

question 71

Multiple Choice

Which one of the following is false concerning a proposed merger of firms?

• A) The acquired firm will cease to exist.
• B) Shareholders of the acquired firm may receive securities in the acquiring firm.
• C) Mergers are sometimes combinations of equals.
• D) Shareholder approval to merge is not required.

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Definitions:

Collect Funds

To collect funds means to gather or accumulate money from various sources, often in the context of payments or fundraising activities.

Debit Card

A payment card that deducts money directly from a consumer’s checking account to pay for a purchase.

Zero-balance Account

A checking account in which a balance of zero is maintained by automatically transferring funds from a master account in an exact amount to cover checks presented.