Which One of These Statements Is True

question 10

Multiple Choice

Which one of these statements is true?

• A)The NPV of a merger can only be shared with the target firm's shareholders if the merger is financed with cash.
• B)A cash acquisition affects the control of a bidder firm.
• C)An acquisition financed with shares of stock is generally a tax-free transaction for all involved shareholders.
• D)A cash acquisition causes the shareholders of the target firm to share in any merger losses.
• E)A cash acquisition is less expensive than a stock acquisition to the shareholders of the acquiring firm when a merger produces a negative NPV.

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Definitions:

Interviews

Structured conversations used to assess candidates' qualifications, skills, and fit for a position, or to gather information for research purposes.

Encourage

means to inspire with courage, spirit, or confidence, motivating someone to take a desired action or continue doing something.

Interviewee

A person who answers questions during an interview, often for a job position, research study, or media publication.

Compassionate Leave

Time off granted to employees due to a family emergency, bereavement, or other significant personal issues, acknowledging their need for time to cope.