White Knights

question 63

Multiple Choice

White Knights

• A) advise companies on ways to avoid being taken over.
• B) offer a higher purchase price and more friendly offer in the event of an unsolicited and unfriendly takeover attempt.
• C) attempt to make money in the stock market on stocks that are likely merger candidates.
• D) buy depressed stock of quality companies when merger talks are discontinued.

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Definitions:

Standard Volume

The amount of volume the plant would have generated if each unit of product manufactured used precisely the standard unit of volume allowed.

Budgeted Volume

The amount of production expected to occur during the year, usually stated in terms of a common input measure such as direct labor hours. Budgeted volume can be estimated as expected volume for next year or normal volume over the long run.

Actual Output

The tangible products or results produced by a company's operations or activities.

Total Overhead Variance

The difference between total actual and applied overhead.