Which one of the following is a disadvantage of a merger?
A) Transferring the title to all the target firm's assets
B) Disbanding the operations of the target firm
C) Hiring an underwriter to distribute the IPO shares
D) Incurring the costs of creating a new legal entity
E) Seeking approval of the shareholders of both firms

Question

Quizplus · Accepted Answer

Mergers require the approval of the shareholders of both firms involved, which can be a complex and time-consuming process.

Which One of the Following Is a Disadvantage of a Merger