Which of the Following Statements Is False

question 49

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:

Just Noticeable Difference Threshold

The minimum difference in intensity between two stimuli required for the difference to be detected at least half the time.

Ultraviolet

A type of electromagnetic radiation with wavelengths shorter than those of visible light but longer than those of X-rays.

Infrared

Electromagnetic radiation with wavelengths longer than those of visible light but shorter than those of microwaves, used in various technologies including remote controls and thermal imaging.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, responsible for decision making, problem solving, control of purposeful behaviors, consciousness, and emotions.