Use the Following Information to Answer the Question(s) Below

question 34

Multiple Choice

Use the following information to answer the question(s) below.
Polka Corporation exchanges 100,000 shares of newly issued $1 par value common stock with a fair market value of $20 per share for all of the outstanding $5 par value common stock of Spot Inc. and Spot is then dissolved. Polka paid the following costs and expenses related to the business combination:

-When considering an acquisition, which of the following is NOT a method by which one company may gain control of another company?

• A) Purchase of the majority of outstanding voting stock of the acquired company.
• B) Purchase of all assets and liabilities of another company.
• C) Purchase all the outstanding voting stock of the acquired company.
• D) All of the above methods result in a company gaining control over another company.

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Definitions:

Collective Agreement

A written contract negotiated between an employer and a union representing the employees, outlining terms of employment, wages, and conditions.

Union

An organization formed to protect and advance the interests of its members, typically regarding labour conditions, wages, and benefits.

Bargaining Zone

The range within which two parties in a negotiation are willing to compromise in order to reach an agreement.

Target Point

The desired outcome or goal that negotiators aim to achieve in a negotiation process.