Which of the Following Statements Is Most CORRECTσ

question 8

Multiple Choice

Which of the following statements is most CORRECTσ

• A) a defensive merger is one where the firm's managers decide to merge with another firm to avoid or lessen the possibility of being acquired through a hostile takeover.
• B) acquiring firms send a signal that their stock is undervalued if they choose to use stock to pay for the acquisition.
• C) cash payments are used in takeovers but never in mergers.
• D) managers often are fired in takeovers, but never in mergers.
• E) if a company that produces military equipment merges with a company that manages a chain of motels, this is an example of a horizontal merger.

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Definitions:

Culture Wars

Conflicts between groups with differing beliefs, values, or lifestyles, often reflected in political, religious, or social debates.

Traditionalist Values

Traditionalist values refer to the beliefs and practices that emphasize preserving historical norms and cultural heritage.

Conservative Values

Conservative Values are principles that emphasize tradition, stability, and respect for authority, often associated with right-leaning political ideologies.

Fundamental Issues

Core or primary concerns, problems, or disputes that are essential to the nature of a subject or context.