Which of the Following Statements Is Incorrect

question 28

Multiple Choice

Which of the following statements is incorrect?

• A)A mutual-to-stock conversion allows savings institutions to obtain additional capital by issuing stock.
• B)Because of the difference in owner control, mutual savings institutions are more susceptible to unfriendly takeovers.
• C)When a mutual savings institution is involved in an acquisition, it first converts to a stock-owned savings institution.
• D)Consolidation and acquisitions have caused the number of mutual and stock savings institutions to decline consistently over the years.

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Definitions:

Ownership

The legal right to possess, use, and control a property or an asset.

Net Income

A company's total earnings or profit, calculated as revenue minus costs of goods sold, expenses, taxes, and other deductions.

Equity Method Investment

A method of accounting for investments in which the investor has significant influence over the investee, but not full control, typically between 20% and 50% ownership.

Outstanding Shares

The total number of shares of a corporation's stock that have been issued and are currently owned by shareholders, including those held by institutional investors and restricted shares.