In a Merger or Acquisition,a Firm Should Be Acquired If

question 38

Multiple Choice

In a merger or acquisition,a firm should be acquired if it:

• A)generates a positive net present value to the shareholders of an acquiring firm.
• B)is a firm in the same line of business,in which the acquirer has expertise.
• C)is a firm in a totally different line of business which will diversity the firm.
• D)pays a large dividend which will provide cash pass through to the acquiror.
• E)None of the above.

---

Definitions:

Mistrust

A lack of confidence or faith in something or someone, often resulting from negative experiences or a sense of uncertainty.

Identity Crises

Periods of uncertainty and confusion in individuals as they struggle to understand and define themselves and their roles in society.

Life Span

The maximum period that an individual organism can live; in humans, it often refers to the average duration of life.

Identity Cohesion

The sense of clarity, confidence, and consistency in one's identity and sense of self over time and across situations.