Which one of the following statements concerning mergers and acquisitions is correct?
A)Generally,two-thirds of the shareholders in each firm must approve a merger.
B)Acquisitions always result in at least one firm being dissolved.
C)The net present value of an acquisition should have no bearing on whether or not the acquisition occurs.
D)Acquisitions of assets are generally quite simple and inexpensive from a legal and accounting perspective.
E)At least one-half of the shareholders must vote to approve an acquisition of stock.

Question

Quizplus · Accepted Answer

Generally, the approval of two-thirds of the shareholders in each firm is required to carry out a merger. The exact percentage may vary depending on the laws and regulations of the specific jurisdiction.

Option B is incorrect because in some cases, both firms may continue to exist after an acquisition, and no firm may be dissolved.

Option C is incorrect because the net present value of an acquisition is a crucial factor in deciding whether a deal should go through or not.

Option D is incorrect because acquisitions of assets can be complex and expensive, especially if there are intellectual property rights or other legal complications involved.

Option E is incorrect because the required percentage of shareholder approval for an acquisition may vary depending on the laws and regulations of the specific jurisdiction, and it may not always be one-half.

Which One of the Following Statements Concerning Mergers and Acquisitions