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:

World Population

The total number of living humans on Earth at a given time.

Largest City

The city with the highest population within a given country, region, or the world, often serving as a central hub for economic, political, and cultural activities.

United States

A federal republic consisting of 50 states, a federal district, and several territories, known for being the world's third-largest country by total area.

Demography

The statistical study of populations, including their size, distribution, and trends, as well as the factors influencing these elements.