In a Merger The

question 32

Multiple Choice

In a merger the:

• A)legal status of both the acquiring firm and the target firm is terminated.
• B)acquiring firm retains its name and legal status.
• C)acquiring firm acquires the assets but not the liabilities of the target firm.
• D)stockholders of the target firm have little,if any,say as to whether or not the merger occurs.
• E)target firm always continues to exist as a subsidiary of the acquiring firm.

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Definitions:

Shared Values

Core beliefs or principles that are collectively held and guide the behavior and decision-making within an organization or society.

Motivational Mechanism

The process or system by which motivation is generated or regulated within individuals or groups.

Agency Law

The area of law that deals with the relationship between agents and principals, including the duties and rights that arise from such relationships.

State Laws

Statutes and regulations enacted by state legislatures that govern matters not exclusively reserved to the federal government.