In a Merger The

question 70

Multiple Choice

In a merger the:

• A) legal status of both the acquiring firm and the target firm is terminated.
• B) acquiring firm retains its pre-merger legal status.
• C) acquiring firm acquires the assets, but not the liabilities, of the target firm.
• D) shareholders of the target firm have little, if any, say as to whether or not the merger occurs.
• E) target firm continues to exist but will be a wholly owned subsidiary of the acquiring firm.

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Definitions:

Variances Reports

Financial reports that compare actual financial results to the budgeted or standard costs, highlighting deviations.

Promptness

The quality of acting quickly or within an expected timeframe.

Variable Overhead Rate

A metric that represents the variable costs incurred to operate a business, changing with the level of production or activity.

Fixed Overhead Rate

A set rate used to allocate fixed indirect costs of production to individual units or activity bases.