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.

---

Definitions:

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, with minimal unemployment.

Positive Statement

A factual claim about how the world actually works, verifiable by observation or scientific evidence, as opposed to normative statements which involve values and judgements.

Humidity Level

The amount of water vapor present in the air, expressed as a percentage of the amount needed for saturation at the same temperature.

Temperature

A measure of the average kinetic energy of the particles in a substance, indicating how hot or cold the substance is.