In a Business Combination,the Acquirer Is the Party That

question 13

Multiple Choice

In a business combination,the acquirer is the party that:

• A)obtains control of the other entities
• B)concedes control over the acquired entities
• C)sells the acquired entity
• D)receives the acquisition consideration.

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Definitions:

Cash Inflows

Refers to the money coming into a company, typically from operations, investments, and financing activities.

NPV Zero

A situation where the net present value of a project or investment is zero, indicating that the projected earnings are exactly equal to the initial investment.

Required Return

The minimum expected return an investor demands for investing in a non-risk-free asset.

Hacksaw Blade

A replaceable, toothed strip used in a hacksaw for cutting materials such as metal and plastic.