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:

Loyal Nine

A secret political organization formed in 1765 in Boston, aiming to fight against the imposition of British taxation and laws.

Quartering Act

A name given to a series of acts passed by the British Parliament in the 18th century, requiring local governments of the American colonies to provide housing and food for British soldiers.

Indentured Servants

Laborers bound under a contract to work for a specific person for a designated period in exchange for transportation, food, and accommodation.

Manufacturing

The process of producing goods in large quantities using machinery and labor, often within an industrial setting.