A Merger Will Be Financially Justified Only If a Target

question 45

True/False

A merger will be financially justified only if a target firm's value is greater to the acquiring firm than its market value as a separate entity.

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Definitions:

Basic Need

Essential requirements for human survival and well-being, such as food, water, shelter, and clothing.

Total Budget

Total Budget refers to the combined allocation of financial resources covering all aspects and departments of an organization within a specific timeframe.

Corporate Affairs

Encompasses the management of a company's relationships and interactions with its stakeholders, including government, the public, and the media.

External Environment

The external environment includes all outside factors and influences that impact the operation of a business, such as economic, social, political, and technological factors.