A Wealth of Data Suggests That Most Mergers and Acquisitions

question 54

Multiple Choice

A wealth of data suggests that most mergers and acquisitions

• A)create extensive value for the companies involved.
• B)do not create,and may actually reduce,value for the entities involved.
• C)create and sustain large and immediate increases in value.
• D)have little financial impact on the firms involved.
• E)none of these choices.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders; it has its own rights and liabilities.

Shareholders

Individuals or entities that own shares in a corporation, thereby having a claim on part of the corporation's assets and earnings.

Partners

Individuals or entities who engage in business together with the goal of making a profit, sharing the profits and losses according to their agreement.

Partnership

A valid form of business collaboration that entails two or more individuals equally partaking in management and enjoying profits.