All of the Following Are Benefits of Acquisitions EXCEPT the ________

question 4

Multiple Choice

All of the following are benefits of acquisitions EXCEPT the ________.

• A)acquisition of goodwill the company has built up over the years
• B)acquisition of the brand recognition of the existing company
• C)ability to use alternate methods to finance the purchase of the company
• D)acquisition of a plant or physical facility with obsolete equipment

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Definitions:

Cash Dividend

A financial distribution from a firm's profits to its investors, typically provided as cash.

Stockholders’ Equity

The ownership claim of shareholders on total assets. It is to a corporation what owner’s equity is to a proprietorship.

Cumulative Preferred Stock

A type of preferred stock that entitles shareholders to receive dividend arrearages in full before any dividends can be issued on other shares.

Par Value

The nominal or face value of a stock or bond, as stated by the issuing company.