In Order to Completely Acquire Write Well Inc

question 31

Multiple Choice

In order to completely acquire Write Well Inc., Delta Inc. paid the shareholders of Write Well Inc. money in exchange for their shares. This is an example of a _____.

• A) freeze-out merger
• B) non cash merger
• C) horizontal divestiture
• D) leveraged buyout
• E) vertical divestiture

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Definitions:

Maturity

The date on which a financial obligation, such as a bond or loan, becomes due and is to be paid off.

Growth

A key objective for businesses and economies, referring to an increase in capacity, value, or size, often measured by metrics such as GDP for economies and sales revenues for businesses.

Accounts Payable

Money owed by a company to its creditors for goods or services that have been delivered but not yet paid for.

Inventory

Refers to the goods and materials a business holds for the ultimate goal of resale.