题目内容

All of the following are true of buyer due diligence except for

A. Due diligence is the process of validating assumptions underlying valuation.
B. Can be replaced by appropriate representations and warranties in the agreement of purchase and sale.
C. Primary objectives are to identify and to confirm sources and destroyers of value
D. Consists of operational, financial, and legal reviews.
Endeavors to identify the “fatal flaw” that could destroy the deal

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The negotiation process consists of all of the following concurrent activities except for

A. Refining valuation
B. Deal structuring
C. Integration planning
Due Diligence
E. Developing the financing plan

In a merger, the acquiring firm assumes all liabilities of the target firm. Assumed liabilities include all but which of the following?

A. Current liabilities
B. Long-term debt
C. Warranty claims
D. Fully depreciated operating equipment
E. Off-balance sheet liabilities

The actual price paid by the buyer for the target firm is determined when

A. The initial offer is made
B. As a result of the negotiation process
C. When the letter of intent is signed
D. Following the completion of due diligence
E. Once a financing plan has been approved

All of the following are true about a confidentiality agreement except for

A. Often applies to both the buyer and the seller
B. Stipulates the type of seller information available to the buyer and how the information can be used
C. Limits the use of information about the seller that is publicly available
D. Includes a termination date
E. Limits the ability of either party to disclose publicly the nature of discussion between the buyer and seller

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