Which One of the Following Statements Is Correct

question 26

Multiple Choice

Which one of the following statements is correct?

• A)If an acquisition is made with cash,then the cost of that acquisition is dependent upon the acquisition gains.
• B)Acquisitions made by exchanging shares of equity are normally taxable transactions.
• C)The management of an acquiring firm may put itself at risk of losing control of the firm if they make acquisitions using shares of equity.
• D)The equityholders of the acquiring firm will be better off when an acquisition results in losses if the acquisition was made with cash rather than with equity.
• E)Acquisitions based on legitimate business purposes are not taxable transactions regardless of the means of financing used.

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Definitions:

Lac Operon

The lac operon is a segment of DNA found in bacteria that consists of genes necessary for metabolizing lactose, serving as a classic example of gene regulation.

Repressor Protein

A protein that binds to specific DNA sequences, preventing the transcription of genetic information from DNA to mRNA.

DNA Binding

The interaction of molecules, particularly proteins, with specific sequences of DNA, influencing the DNA's function and activity.

Operon

A unit of genetic material that functions in a coordinated manner, consisting of genes and control sequences, which are transcribed together in bacteria.