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?

---

Definitions:

Hallucinations

Perceptions in the absence of external stimuli, such as seeing or hearing things that are not present.

Restricted Affect

A symptom in which emotional expression is reduced or absent.

Anhedonia

The inability to feel pleasure in normally pleasurable activities.

Delusions of Reference

False beliefs that insignificant remarks, events, or objects in one's environment have personal meaning or significance.