When a Merger Transaction Is Not Supported by the Target

question 30

Multiple Choice

When a merger transaction is not supported by the target firm's management, forcing the acquiring company to try to gain control of the firm by buying shares in the marketplace, this is an example of

• A) financial merger.
• B) hostile takeover.
• C) friendly merger.
• D) strategic merger.

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Definitions:

Defined

Clearly described, outlined, or explained.

Managers

are individuals within an organization responsible for planning, directing, and overseeing the work of a group of individuals.

Hazard

Something that has the potential to cause damage, harm, or adverse health effects to people or property.

Human-Made Structures

Objects or buildings created by humans rather than occurring naturally in the environment.