Which Statement Best Describes Mergers

question 55

Multiple Choice

Which statement best describes mergers?

• A)The purchase of Red Lobster Restaurants initiated by Remax Realty is an example of conglomerate mergers.
• B)A merger can be blocked either by a firm's customers or its suppliers, not the government.
• C)The existence of golden parachutes is one reason that the management of a target company tries to block a takeover.
• D)In a hostile takeover, the target company's management makes a tender offer asking its shareholders to sell their shares to the acquiring company.

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Definitions:

Meatless Fridays

A practice primarily observed within some Christian denominations where adherents abstain from consuming meat on Fridays, particularly during Lent, as a form of penance or spiritual discipline.

Demand

The desire of buyers or consumers for a particular good or service, backed by the ability and willingness to pay for it.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level.

Demand

The level of demand for goods or services that individuals are ready and capable of purchasing at multiple price points during a set period.