Which Statement Best Describes Mergers

question 56

Multiple Choice

Which statement best describes mergers?

• A) The purchase of Red Lobster Restaurants initiated by Remax Realty is an example of conglomerate mergers.
• B) A merger can be blocked either by a firm's customers or its suppliers, not the government.
• C) The existence of golden parachutes is a reason that the management of a target company tries to block a takeover.
• D) In a hostile takeover, the target company's management makes a tender offer asking its shareholders to sell their shares to the acquiring company.

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Definitions:

Material Breach

A significant failure to perform under a contract which permits the other party to either demand performance or terminate the agreement.

Frustration of Purpose

A doctrine in contract law that can discharge the parties' obligations when a change in circumstances makes the contract impossible to perform as originally intended.

Prevention of Performance

Prevention of performance is a situation where one party's actions make it impossible for the other party to fulfill their contractual obligations, potentially leading to legal consequences.

American History

The recorded events, actions, and developments that have occurred in the United States from its founding to the present day.