Which of the Following Statements Is False

question 14

Multiple Choice

Which of the following statements is false?

• A) There are two primary mechanisms by which ownership and control of a public corporation can change: Either another corporation or group of individuals can acquire the target firm, or the target firm can merge with another firm.
• B) Merger activity is greater during economic contractions than during expansions.
• C) Mergers and acquisitions are part of what is often referred to as "the market for corporate control."
• D) The takeover market is also characterized by merger waves peaks of heavy activity followed by quiet troughs of few transactions.

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Definitions:

Shutdown Point

The level of operation at which a company does not benefit from continuing operations and may decide to temporary halt production—it's where marginal cost equals average variable cost.

Lowest Price

The minimum amount at which a product or service is sold, often determined by costs, competition, and market demand.

Long Run

A period in which all factors of production and costs are variable, allowing full adjustment to changes.

Firm's Profit

The financial gain achieved by a firm when its total revenues exceed its total expenses.