Which Statement Best Describes a Merger Concept

question 66

Multiple Choice

Which statement best describes a merger concept?

• A)A conglomerate merger is one where a firm combines with another firm in the same industry.
• B)Regulations in Canada prohibit acquiring firms from using common shares to purchase another firm.
• C)Defensive mergers are designed to make a company less vulnerable to a takeover.
• D)The corporate valuation method and the equity residual method, even properly applied, produce different results.