4. Which one of the following is a key disadvantage of a a. As a general rule, 50.01 percent of
the shareholders of both the acquiring and the acquired firms must approve of the merger. b. As a
general rule, at least two-thirds of the shareholders of both the acquiring a of the merger c. The
shareholders of only the acquired firm must approve s must approve the merger d. The
shareholders of only the acquiring firm must approve the merger. e. Neither the shareholders of
the acquiring nor the acquired firm have to approve of the merger 15. An acquisition of a firm
through the purchase of shares of the outstanding stock: I. is frequently more expensive than if
the two firms had just merged. II. can be accomp target firm\'s board of directors. III. can be
accomplished without having the shareholders vote on the acquisition. lished without the
involvement of the IV. may be dependent upon the maximum amount of shares made available
for sale to the acquiring firm. a. I and III only b. II and IV only c. I, III, and IV only d.I, and III
only e. I, II, II, and IV 16. Takeovers can take which of the following forms? I. tender offer II.
III. proxy contest IV. going private transaction a. I and Il only b. III and IV only c. II, III, and IV
only d.I, and IIl only and I
Solution
Answer for 14
Here Option B i.e. approval from 2/3 of aquirer and aquired side should approve of merger this is
one disadvantage mentioned in options
Hence option b is correct response here.
Answer for 15
All the options provided are correct
Hence correct response here is Option 4
Answer for 16
Again in this case take over can take Going Private, Tender offer,merger, proxy conest etc.
Hence Option E is correct answer as all the given objectives are correct..
4. Which one of the following is a key disadvantage of a a. As a gene.pdf
1. 4. Which one of the following is a key disadvantage of a a. As a general rule, 50.01 percent of
the shareholders of both the acquiring and the acquired firms must approve of the merger. b. As a
general rule, at least two-thirds of the shareholders of both the acquiring a of the merger c. The
shareholders of only the acquired firm must approve s must approve the merger d. The
shareholders of only the acquiring firm must approve the merger. e. Neither the shareholders of
the acquiring nor the acquired firm have to approve of the merger 15. An acquisition of a firm
through the purchase of shares of the outstanding stock: I. is frequently more expensive than if
the two firms had just merged. II. can be accomp target firm's board of directors. III. can be
accomplished without having the shareholders vote on the acquisition. lished without the
involvement of the IV. may be dependent upon the maximum amount of shares made available
for sale to the acquiring firm. a. I and III only b. II and IV only c. I, III, and IV only d.I, and III
only e. I, II, II, and IV 16. Takeovers can take which of the following forms? I. tender offer II.
III. proxy contest IV. going private transaction a. I and Il only b. III and IV only c. II, III, and IV
only d.I, and IIl only and I
Solution
Answer for 14
Here Option B i.e. approval from 2/3 of aquirer and aquired side should approve of merger this is
one disadvantage mentioned in options
Hence option b is correct response here.
Answer for 15
All the options provided are correct
Hence correct response here is Option 4
Answer for 16
Again in this case take over can take Going Private, Tender offer,merger, proxy conest etc.
Hence Option E is correct answer as all the given objectives are correct.
