One Company Wishes to Acquire Another

question 33

Multiple Choice

One company wishes to acquire another.Which of the following forms of acquisition does not require a formal vote by the shareholders of the acquired firm?

• A)Merger
• B)Acquisition of stock
• C)Acquisition of assets
• D)Consolidation
• E)All of the above require a formal vote.

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Definitions:

Face Validity

The degree to which an assessment or test appears to measure what it is intended to measure, based on subjective judgment.

Criterion-related Validity

The extent to which a measure is related to an outcome or criterion, testing how well one measure predicts an outcome for another measure.

Construct Validity

The extent to which a test measures what it claims to be measuring.

Construct Validity

The degree to which a test measures what it claims to be measuring, specifically the ability of a measurement tool to actually measure the theoretical construct it intends to measure.