Which of the Following Statements Is Most CORRECT

question 13

Multiple Choice

Which of the following statements is most CORRECT?

• A) Regulations in the United States prohibit acquiring firms from using common stock to purchase another firm.
• B) Defensive mergers are designed to make a company less vulnerable to a takeover.
• C) Hostile mergers always create value for the acquiring firm.
• D) In a tender offer, the target firm's management always remain after the merger is completed.
• E) A conglomerate merger is one where a firm combines with another firm in the same industry.

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Definitions:

Potential Investors

Individuals or entities that may consider allocating capital or funds to a business or project with an expectation of financial return.

Product Development

The process of creating, designing, and bringing a new product to market.

Drawings

Artistic representations or diagrams made using a pen, pencil, or other implements on a surface.

Photographs

are images captured by a camera, used to record or express scenes, events, or portraits.