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:

Anger And Hostility

Emotional states characterized by strong feelings of displeasure, aggression, and potential antagonism towards others.

Coronary Heart Disease

A condition characterized by reduced blood flow to the heart muscle due to the buildup of plaque in the arteries of the heart, leading to angina and heart attacks.

Type A Personality

A temperament characterized by high levels of competitiveness, impatience, and a sense of urgency.

Type A Personality

A personality characterized by competitiveness, high ambition, impatience, and a high sense of urgency.