Acquisitions Are the Opposite of Mergers,in Which Companies Sell Assets

question 23

True/False

Acquisitions are the opposite of mergers,in which companies sell assets such as subsidiaries,product lines,or production facilities.

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Definitions:

International Joint Venture

A business arrangement in which two or more parties from different countries form a partnership to share resources, risks, and rewards in pursuing a specific business venture.

Abnormal Return

The difference between the actual return of a security and the expected return based on risk and market performance.

Fundamental Analysts

Professionals who evaluate securities by measuring the intrinsic value of a stock, company, or market, based on financial and economic factors.

Dividend Prospects

The potential for future dividend payments from investments, often assessed to evaluate the attractiveness of stocks.