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:

Mobile Devices

Portable electronic devices such as smartphones and tablets that have the capability to perform a variety of functions including calling, texting, browsing the internet, and running applications.

White Space

In design, the intentional use of unmarked space in the layout to create a cleaner, more readable structure.

Design Elements

Basic units and visual aspects used to create and compose a piece of artwork or a design.

Restraint

The act of limiting, controlling, or moderating something, or the ability to exercise self-control.