Which of the Following Statements Is True

question 63

Multiple Choice

Which of the following statements is true?

• A)When a firm's assets are acquired, the liabilities are transferred to the vendor.
• B)The purchase of a target company's shares as a method of acquiring a firm's assets is attractive when the target company has contingent liabilities outstanding.
• C)With an acquisition, both assets and liabilities are taken over by the new parent.
• D)The purchase of shares must take place soon after the announcement of the intent to merge, thereby minimizing the premium over current market price that has to be paid.

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Definitions:

Role Senders

People or entities in an organization that have expectations for the behavior and performance of others, often influencing their roles.

Focal Role

The central or most important role that an entity or individual plays in a specific context or system.

Intragroup Conflict

Disagreements or disputes that occur within a group, team, or organization, which can arise from differences in opinions, goals, or working styles among its members.

Groupthink

A phenomenon in which the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome.