The merger of two completely unrelated enterprises is referred to as a congeneric merger, however, the merger of somewhat related companies is referred to as a conglomerate merger of somewhat related companies is referred to as conglomerate merger.
TRUE OR FALSE
1. The merger of two completely unrelated enterprises is referred to as a congeneric merger, however, the merger of somewhat related companies is referred to as a conglomerate merger of somewhat related companies is referred to as conglomerate merger.
2. if there is sufficient proof that the acquisition has been made for a business purpose and the shareholders of the target firm will be compensated with voting shareholders of the target firm will be compensated with voting shares in the acquiring firm, the acquisition will be non-taxable.
3. with cash consideration, the stockholders of the target firm share the gains and losses of acquisition and vice-versa.
4. A merger is the total absorption of one firm by another, however with a consolidation an entirely new firm is created.
5. A white knight is a friendly suitor that a target firm turns to as an alternative to a hostile bidder.
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