Which of the Following Is Not True of Mergers

question 4

Multiple Choice

Which of the following is not true of mergers?

• A) Mergers are legally simple.
• B) Mergers must be approved by a vote of the stockholders of each firm.
• C) In a merger, the acquiring firm retains its name and identity.
• D) Mergers represent a public offer to buy shares directly from the stockholders of another firm.

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Definitions:

Air Tanks

Reservoirs used in pneumatic systems of vehicles, especially in air brake systems, to store compressed air needed for the operation of brakes and other components.

Diversification

The strategy of spreading investments among different financial instruments, industries, or other categories to reduce risk.

Portfolio Risk

Describes the uncertainty or variability of returns associated with a portfolio of investments, highlighting the combined risk of individual assets.

Systematic Risk

The risk inherent to the entire market or an entire market segment, which cannot be mitigated through diversification.