The shareholders of a target ﬁrm beneﬁt the most when:
A)an acquiring ﬁrm has the better management team and replaces the target ﬁrm's
Managers.
B)the management of the target ﬁrm is more eﬃcient than the management of the acquiring
ﬁrm which replaces them.
C)the management of both the acquiring ﬁrm and the target ﬁrm are as equivalent as
Possible.
D)their current management team is kept in place even though the managers of the
Acquiring ﬁrm are more suited to manage the target ﬁrm's situation.
E)their management team is technologically knowledgeable yet ineffective.

Question

Quizplus · Accepted Answer

Shareholders of a target firm benefit the most when the acquiring firm has a better management team and replaces the target firm's managers. This is because effective management can improve operations, increase efficiency, and enhance shareholder value.

The Shareholders of a Target ﬁRm Beneﬁt the Most When