Which One of the Following Statements Is Correct

question 58

Multiple Choice

Which one of the following statements is correct?

• A) If an acquisition is made with cash, then the cost of that acquisition is dependent upon the acquisition gains.
• B) Acquisitions made by exchanging shares of stock are normally taxable transactions.
• C) The management of an acquiring firm may put itself at risk of losing control of the firm if they make acquisitions using shares of stock.
• D) The stockholders of the acquiring firm will be better off when an acquisition results in losses if the acquisition was made with cash rather than with stock.
• E) Acquisitions based on legitimate business purposes are not taxable transactions regardless of the means of financing used.

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Definitions:

Boundary Scanners

Individuals or mechanisms that monitor and analyze the external environment of an organization for opportunities and threats.

System Thinkers

Individuals who approach problems and solutions by considering the broader, interconnected system, using holistic thinking to understand complex situations.

Effective Leaders

Individuals who successfully inspire and guide others towards achieving goals and fulfilling the vision of an organization or group.

Stress-Resistant

Being stress-resistant refers to the ability to withstand or manage stress effectively without succumbing to its negative impacts on health and performance.