The difference between a merger and an acquisition is that
A. a merger is a combination of three or more companies, whereas an acquisition is a pooling of interests of just two companies.
B. in a merger, the companies retain their original names, whereas in an acquisition the name of the company being acquired is changed to be the name of the acquiring company.
C. a merger is the combining of two or more companies into a single corporate entity, whereas an acquisition involves one company (the acquirer) purchasing and absorbing the operations of another company (the acquired).
D. a merger involves two or more companies deciding to adopt the same strategy, whereas an acquisition involves one company taking over the strategy-making function of another company.
E. a merger involves one company purchasing the assets of another company with cash, whereas an acquisition involves a company acquiring another company by buying all of the shares of its common stock.
Answer: C
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Which of the following examples are ways in which persons are vulnerable as consumers because they are vulnerable in some more general sense?
A. Elderly persons vulnerable to injuries and illnesses might be compelled to make consumer choices based on fear or guilt. B. An inner-city resident who is poor, uneducated, and chronically unemployed is unlikely to weigh the consequences of using drugs or alcohol. C. A person afflicted with a medical condition or disease might feel fear associated with the condition that can lead to uninformed consumer choices. D. A grieving family member might make choices for funeral services based on guilt or sorrow. E. All of the answers are correct. F. None of the answers are correct.
The business being separate and distinct from the owners is an integral part of the:
a. time period assumption. b. going concern assumption. c. business entity assumption. d. realization assumption. e. None of the answers are correct.
Inga runs a Swedish health spa in Connecticut. She orders 100 loofah sponges from a company in California. They are sent "F.O.B. Hartford, Connecticut," but they never arrive at Inga's. What consequence?
A) Inga has to pay anyway since it was a destination contract. B) The California company is required to bear the loss since the sponges had not yet reached the F.O.B. point. C) The California company and Inga will have to split the loss since they did not specify in their contract when the risk of loss would pass to Inga. D) It cannot be determined from the information given who has the risk of loss.
Only federal statutes may violate the Constitution
a. True b. False Indicate whether the statement is true or false