Which of the Following Statements Is FALSE

question 33

Multiple Choice

Which of the following statements is FALSE?

• A)SEC rules make it difficult for investors to buy much more than about 10% of a firm in secret.After an acquirer acquires such an initial stake in the target,called a toehold,they would have to make their intentions public by informing investors of his large stake.
• B)With the availability of both the freezeout merger and the leveraged buyout as acquisition strategies,most of the value added accrues to the acquiring shareholders.
• C)The laws on tender offers allow the acquiring company to freeze existing shareholders out of the gains from merging by forcing non-tendering shareholders to sell their shares for the tender offer price.
• D)Premiums in LBO transactions are often quite substantial-while they can avoid the free-rider problem acquirers must still get board approval to overcome other defenses such as poison pills,as well as outbid other potential acquirers.

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Definitions:

Long-Term Memory

The phase of the memory system capable of storing information for prolonged periods, often throughout a person's life.

Unlimited Capacity

A hypothetical concept suggesting that there's no upper limit to the amount of information the human brain can store.

Decades

Periods of ten years, often used to mark significant time intervals in history, research, and life events.

Episodic Memory

The type of long-term memory that involves the recollection of specific events, situations, and experiences, including the context and emotions associated with them.