Which of the Following Statements Is FALSE

question 4

Multiple Choice

Which of the following statements is FALSE?

• A)Any acquirer shares received in full or partial exchange for target shares triggers an immediate tax liability for target shareholders.
• B)In a friendly takeover,the target board of directors supports the merger,negotiates with potential acquirers,and agrees on a price that is ultimately put to a shareholder vote.
• C)How the acquirer pays for the target affects the taxes of both the target shareholders and the combined firm.
• D)If the acquirer purchases the target assets directly (rather than the target stock),then it can step up the book value of the target's assets to the purchase price.

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Definitions:

Perceptual Benefits

Advantages perceived by consumers, affecting their purchase decisions based on personal feelings or beliefs.

Legal Requirements

Legal requirements are the laws and regulations that individuals or entities must comply with in their personal, professional, or business activities.

Customer Value

The comparative worth that a customer assigns to a product or service over potential substitutes.

Candy Dispensers

Devices or machines designed to release candy, often operated by coins or digitally, found in various public spaces or retail environments.