Which of the Following Statements Regarding Acquirers and Acquirees Is

question 45

Multiple Choice

Which of the following statements regarding acquirers and acquirees is FALSE?

• A)The acquiree is usually the entity that has the largest minority voting interest in an entity that has a widely dispersed ownership.
• B)The acquirer is usually the combining entity whose owners have the ability to elect or appoint or to remove a majority of the members of the governing body of the combined entity.
• C)In a takeover, it is normally the larger company that takes over the smaller company.
• D)Normally, the entity that is the acquirer is the one that undertakes action to take over the acquiree.

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