Which Statement Best Describes Mergers

question 42

Multiple Choice

Which statement best describes mergers?

• A)If a company that produces military equipment merges with a company that manages a chain of motels, this is an example of a horizontal merger.
• B)A defensive merger is one where the firm's managers decide to merge with another firm to avoid or lessen the possibility of being acquired through a hostile takeover.
• C)Acquiring firms send a signal that their stock is undervalued if they choose to use stock to pay for the acquisition.
• D)Acquiring firms send a signal that their stock is overvalued if they choose to use cash and bonds to pay for the acquisition.

Recognize the legal aspects of partnership liabilities and partners' responsibilities.

Grasp the nature of partnership agreements and their impact on partnership operations.

Comprehend the rights and duties of partners within a partnership.

Understand how partnerships are treated under the law in terms of legal entity status and litigation.

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Definitions:

Etiology

The study of the causes or origins of diseases or disorders, examining how and why they develop.

Abnormal Behaviour

Behavior that is deviant, maladaptive, or culturally inappropriate, which can be indicative of psychological disorder or mental distress.

Self-Actualization

In Abraham H. Maslow’s theory, an actualization of one’s potential arrived at by satisfaction of a hierarchy of needs visualized as a pyramid. At the base are biological or survival needs; the next step up is the need for friendship and affiliation; finally, there is an assurance of self-worth, which comes from giving and receiving love and from an internalized sense of self-esteem. In Maslow’s view, abnormal or dysfunctional behaviour results from a failure to attain the self-esteem necessary to achieve self-actualization.

Abraham Maslow

A psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.