Which of the Following Statements Is FALSE

question 33

Multiple Choice

Which of the following statements is FALSE?

• A)SEC rules make it difficult for investors to buy much more than about 10% of a firm in secret.After an acquirer acquires such an initial stake in the target,called a toehold,they would have to make their intentions public by informing investors of his large stake.
• B)With the availability of both the freezeout merger and the leveraged buyout as acquisition strategies,most of the value added accrues to the acquiring shareholders.
• C)The laws on tender offers allow the acquiring company to freeze existing shareholders out of the gains from merging by forcing non-tendering shareholders to sell their shares for the tender offer price.
• D)Premiums in LBO transactions are often quite substantial-while they can avoid the free-rider problem acquirers must still get board approval to overcome other defenses such as poison pills,as well as outbid other potential acquirers.

---

Definitions:

OCD-Related Disorders

A category of psychiatric disorders characterized by obsessions (intrusive, unwanted thoughts) and compulsions (repetitive behaviors or mental acts) that an individual feels driven to perform.

Compulsively Pulls Hair

A behavioral condition known as trichotillomania, characterized by an irresistible urge to pull out one's own hair.

Obsessive-Compulsive Disorder

A mental health disorder characterized by recurring, unwanted thoughts (obsessions) and repetitive behaviors (compulsions).

Genetic Component

Referring to the contribution of genes or hereditary factors in the development or manifestation of an organism's traits or conditions.