Which Structure Generally Gives Greater Certainty to the Target's Shareholders

question 24

Multiple Choice

Which structure generally gives greater certainty to the target's shareholders in terms of value received?

• A)Floating exchange ratio
• B)Fixed exchange ratio
• C)They both are the same
• D)It depends on the terms

---

Definitions:

Budgeting

The process of creating a plan to spend your money, outlining projected income versus expenses over a particular period.

Manufacturing Overhead Budget

A detailed plan showing the production costs, other than direct materials and direct labor, that will be incurred over a specified time period.

Direct Materials

Raw materials that can be directly traced to the manufacturing process of a product and are an integral part of the finished good.

Direct Labor

The cost of workers who can be easily identified with the manufacturing process of a product.