BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
When considering an acquisition, which of the following is not a method by which one company may gain control of another company?
|
|
Purchase of the majority of outstanding voting stock of the acquired company.
|
|
|
Purchase of all assets and liabilities of another company.
|
|
|
Purchase the assets, but not necessarily the liabilities, of another company previously in bankruptcy.
|
|
|
All of the above methods result in a company gaining control over another company.
|
Explanation:
Detailed explanation-1: -Unfriendly acquisitions, commonly known as “hostile takeovers, ” occur when the target company does not consent to the acquisition.
Detailed explanation-2: -There are four main types of acquisitions based on the relationship between the buyer and seller: horizontal, vertical, conglomerate, and congeneric.
Detailed explanation-3: -Unfriendly or hostile takeover deals, in which target companies do not wish to be purchased, are always regarded as acquisitions. A deal can be classified as a merger or an acquisition based on whether the acquisition is friendly or hostile and how it is announced.
There is 1 question to complete.