In a De Facto Merger

question 16

Multiple Choice

In a de facto merger:

• A)Bidders may be able to avoid all of the target's liabilities
• B)Bidders own at least 30% of the target's stock
• C)Only California law applies
• D)The bidder is considered to have acquired the target even if no formal acquisition took place
• True or False

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Definitions:

Rising Prices

A situation where the general level of prices for goods and services in an economy increases over a period of time.

LIFO Reserve

The difference between inventory reported using the Last-In, First-Out (LIFO) method and its value if the First-In, First-Out (FIFO) method were used, indicating the impact of inflation on inventory costs.

Internal Reporting

The process of preparing and presenting financial and operational information to management and other internal stakeholders to assist in decision-making and performance evaluation.

GAAP Reporting

The standard framework of guidelines for financial accounting that includes the details, complexities, and legalities of business and corporate accounting. GAAP stands for Generally Accepted Accounting Principles.