QUESTION 36 What is the key legal document establishing a formal agreement between a buyer and seller to purchase the target? A. Confidentiality agreement O B. Final bid procedures letter C. Definitive purchase/sale agreement D. Credit agreement O E. 10-K QUESTION 41 Which of the following is not true about purchase accounting? O A. For financial reporting purposes, all M&As must be recorded using the purchase method of accounting. O B. Under the purchase method of accounting, the excess of the purchase price over the fair value of the target's net assets is treated as goodwill on the combined firm's balance sheet. O C. Goodwill may be amortized up to 40 years. O D. If the fair value of the target's net assets later falls below its carrying value, the acquirer must record a loss equal to the difference. O E. None of the above QUESTION 48 A change in the corporate charter making it more difficult for the firm to be acquired by increasing the percentage of shareholders that must approve a merger offer is called a: A. supermajority amendment. B. standstill agreement. C. greenmail provision. D. poison pill amendment. E. white knight provision