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:

Blue Laws

Laws that restrict or ban certain activities on Sundays, historically to encourage observance of the Sabbath.

Sunday Prohibition

Laws or regulations that prohibit certain activities or operations on Sundays, historically rooted in religious observance but can also include secular motivations.

Licensing Statute

Legislation that sets the standards and requirements for obtaining a professional license in a specific field.

Enforceable

Capable of being imposed or applied, especially in legal contexts.