Which of the following statements regarding acquirers and acquirees is FALSE?
A)The acquiree is usually the entity that has the largest minority voting interest in an entity that has a widely dispersed ownership.
B)The acquirer is usually the combining entity whose owners have the ability to elect or appoint or to remove a majority of the members of the governing body of the combined entity.
C)In a takeover, it is normally the larger company that takes over the smaller company.
D)Normally, the entity that is the acquirer is the one that undertakes action to take over the acquiree.

Question

Quizplus · Accepted Answer

The statement that the acquiree is usually the entity that has the largest minority voting interest in an entity that has a widely dispersed ownership is false. The acquiree is typically the target company being acquired, regardless of its ownership structure or level of voting interest.

Which of the Following Statements Regarding Acquirers and Acquirees Is