Which statement best describes mergers?
A) The purchase of Red Lobster Restaurants initiated by Remax Realty is an example of conglomerate mergers.
B) A merger can be blocked either by a firm's customers or its suppliers, not the government.
C) The existence of golden parachutes is a reason that the management of a target company tries to block a takeover.
D) In a hostile takeover, the target company's management makes a tender offer asking its shareholders to sell their shares to the acquiring company.

Question

Quizplus · Accepted Answer

Conglomerate mergers involve companies from unrelated business activities, like a real estate company acquiring a restaurant chain.

Which Statement Best Describes Mergers