When the Management And/or a Small Group of Investors Takeover

question 18

Multiple Choice

When the management and/or a small group of investors takeover a firm and the shares of the firm are delisted and no longer publicly available, this action is known as:

• A) a consolidation.
• B) a vertical acquisition.
• C) a proxy contest.
• D) a going-private transaction.

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Definitions:

Machine Division

A specialized segment within a manufacturing operation focused on the use of machines for production purposes.

Logistics Department

The division within a company responsible for the management of the movement of goods and services from suppliers to customers.

Operating Divisions

Distinct segments within a company, each responsible for certain operations or business units.

Fixed Costs

Outlays that do not fluctuate with production or sales figures, such as office rent, salary payments, and insurance policies.