Which of the following is not correct regarding acquisitions?
A) The acquiring company completely absorbs the target company.
B) The acquired company retains its identity and the acquiring company ceases to exist.
C) Shareholders of the acquiring company do not have to give approval for cash acquisitions.
D) The approval of the target company's shareholders is required because they have to agree to sell their shares.
E) Most acquisitions are cash transactions, where the shareholders in the target company receive cash for their shares.

Question

Quizplus · Accepted Answer

B is not correct because in an acquisition, it is typically the acquired company that ceases to exist as a separate entity or is absorbed, not the acquiring company.

Which of the Following Is Not Correct Regarding Acquisitions