Answer: Yes it was a reasonable response to the change.
Explanation: It was a reasonable response to the change because there was surprise and fear of the unknown.
It generates a positive net present value to the shareholders of an acquiring firm.
<h3>Why Do Companies Merge With or Acquire Other Companies?</h3>
Mergers and acquisitions (M&As) are the acts of combining two or more companies or assets in order to stimulate growth, gain a competitive advantage, increase market share, or influence supply chains.
KEY LESSONS
- Mergers and acquisitions (M&As) are the acts of combining two or more companies or assets in order to stimulate growth, gain a competitive advantage, increase market share, or influence supply chains.
- A merger is the joining of two companies in which one of the companies ceases to exist after being absorbed by the other.
- A merger occurs when one company acquires a majority stake in the target company, which keeps its name and legal structure.
To learn more about merger and acquisition from the given link
brainly.com/question/14195407
#SPJ4
Explanation:
The product cost is the cost that have incurred related to the product. It involves direct material cost, direct labor cost, and the manufacturing overhead account
And, the period cost is the cost which includes the major part of the selling and administrative expenses and is incurred as the time passes
So, the categorization is shown below:
a. Salaries of scientists studying ways to speed forest growth. = Period cost
b. Cost of computer software to track WIP Inventory. = Product cost
c. Cost of electricity at the paper mill. = Product cost
d. Salaries of the company’s top executives. = Period cost
e. Cost of chemicals to treat the paper. = Product cost
f. Cost of TV ads. = Period cost
g. Depreciation on the manufacturing plant. = Product cost
h. Cost to purchase wood pulp.= Product cost
i. Life insurance on the CEO. = Period cost
