Hurricane Inc

question 37

Essay

Hurricane Inc.wants to acquire 100% of the net assets of Flood Inc.using all cash consideration.From the Flood's shareholders' point of view,what are the advantages and disadvantages of Hurricane purchasing shares rather than net assets of Flood?

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Definitions:

Profits_

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Standard Practice

The generally accepted methods or procedures that are adopted by a professional community for consistency and quality.

Net Promoter Index

A metric that gauges the willingness of customers to recommend a company's products or services to others, used as a proxy for customer satisfaction and loyalty.

Frederick Reichheld

A renowned business strategist known for his work on customer loyalty, including the development of the Net Promoter Score (NPS) as a measure of customer loyalty and satisfaction.