Question

An example of a situation in which company needs credit for investing activities is: A. Mergers and acquisitions B. Start-up operating losses C. Seasonal sales patterns D. Refinancing of debt

Answer 1

I think the answer is C

Answer 2

Answer:

The correct answer is letter "A": Mergers and acquisitions.

Explanation:

In corporate words, mergers and acquisitions are the purchases of a company or a company division. Some of these business consolidations are paid in cash and others are charged in cash together with the purchasing business stock. Some are even financed by debt, which is called a leveraged buyout.

Mergers and acquisitions alone, consolidations, tender offers, acquisitions of assets, and management acquisitions are examples of these corporate joints.