Which of the following statements is most correct?

a. If a company which produces military equipment merges with a company which manages a chain of motels, this is an example of a horizontal merger.

b. If a company which produces gasoline and oil products merges with a company which manages a chain of gas stations, this is an example of a vertical merger.

c. If a company buys a firm that is not in the same industry, this is an example of efficient diversification.

d. If a manufacturing company merges with a retail firm, this is an example of monopolistic combination.

e. If a manager opposes a merger, this is always considered to be an example of selfish, but not illegal behavior.

Which of the following statements is most correct?

a.Leveraged buyouts (LBOs) are where a firm issues equity and uses the proceeds to take a firm public.

b. In a typical LBO, bondholders do well but shareholders realize a decline in value.

c. Firms are unable to sell any assets in the first five years following a leverage buyout.

d. LBOs are no longer available due to an SEC regulation passed in 1996.

e. LBOs occur when an acquirer borrows against the targets assets to buyout the targets equity holders.