Which of the Following Statements Is Most CORRECT

question 12

Multiple Choice

Which of the following statements is most CORRECT?

• A) A defensive merger is one where the firm's managers decide to merge with another firm to avoid or lessen the possibility of being acquired through a hostile takeover.
• B) Acquiring firms send a signal that their stock is undervalued if they choose to use stock to pay for the acquisition.
• C) Cash payments are used in takeovers but never in mergers.
• D) Managers often are fired in takeovers, but never in mergers.
• E) If a company that produces military equipment merges with a company that manages a chain of motels, this is an example of a horizontal merger.

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Definitions:

Visual Communication

The practice of conveying ideas, information, and messages through the use of images, symbols, colors, and designs.

Selection Favors

A principle in evolutionary biology where certain traits become more common within a population because they provide a survival or reproduction advantage.

Arginine Vasopressin Receptor

A receptor that binds to arginine vasopressin, a hormone involved in water balance and vasoconstriction.