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Which one of these statements is false? A) Acquisitions are sometimes unfriendly. B) Shareholders of the target firm must vote to approve an acquisition by stock. C) The cost of a stock acquisition can be higher than the cost of a merger if the target firm's management resists. D) The complete absorption of one firm by another requires a merger. E) In stock acquisitions the bidding firm deals directly with the target firm's shareholders.

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Answer: B) Shareholders of the target firm must vote to approve an acquisition by stock.

Explanation:

During an acquisition by stock, the company that wants to acquire the stock deals with the stockholders directly, offering them incentives to let go of their stock. This is not put to a meeting where the shareholders will then vote to approve the acquisition.

The Shares held by the shareholder is their personal property and they can do with it as they please for the most part which includes selling it to a buyer without the need for a vote on the matter.

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