Which of the Following Statements Is False

question 45

Multiple Choice

Which of the following statements is false?

• A) All else being equal, larger firms, because they are more diversified, have an increased probability of bankruptcy.
• B) To justify a takeover based on operating losses, management would have to argue that the tax savings are over and above what the firm would save using carryback and carryforward provisions.
• C) It is possible to combine two companies with the result that the earnings per share of the merged company exceed the premerger earnings per share of either company, even when the merger itself creates no economic value.
• D) When an acquirer buys a private target, it provides the target's owners with a way to reduce their risk exposure by cashing out their investment in the private target and reinvesting in a diversified portfolio.

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Definitions:

Sadness

A mood characterized by feelings of disadvantage, grief, or disappointment.

Anxiety

A sensation of apprehension and discomfort, often in anticipation of a forthcoming event or regarding something with an unpredictable result.

Self-discrepancy

The difference between an individual's self-concept and their ideal or ought self, which can lead to emotional distress.

Practical Application

The use of theoretical knowledge in a real-world situation to solve practical problems or achieve practical results.