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:

Biological Determinism

The belief that human behavior and characteristics are solely determined by genetic makeup and biological factors.

Asexual

An orientation characterized by a lack of sexual attraction towards others, where individuals may still form romantic, emotional connections.

Romantic

Pertaining to a style or movement in the arts that emphasizes emotion, imagination, and individualism above classical order and symmetry.

Sexual Attraction

The feelings of desire or interest towards others based on their sexual characteristics, which can be influenced by various biological, psychological, and social factors.