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Which of these is NOT a mutual commitment event in an acquisition process?

1) Cash disbursement
2) Purchase order
3) Rental agreement
4) Service agreement

User Freewind
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1 Answer

6 votes

Final answer:

In an acquisition process, a rental agreement is not typically a mutual commitment event. A rental agreement pertains to property leasing and does not involve the transfer of company ownership. Cash disbursements, purchase orders, and service agreements have direct roles in acquisitions.

Step-by-step explanation:

The question refers to activities that typically signify a commitment in the process of an acquisition. When companies go through an acquisition, several legal and financial processes occur to transfer ownership and control of one company to another.

The options given are:

  1. Cash disbursement
  2. Purchase order
  3. Rental agreement
  4. Service agreement

Out of these options, the one that is NOT typically considered a mutual commitment event in an acquisition process is a rental agreement. A rental agreement, while contractual, usually pertains to leasing property and is not directly tied to the acquisition of a company.


The other options are directly related to financial and service commitments that are common in acquisitions. Cash disbursements may occur as a part of the purchase price payment, purchase orders may be issued for the procurement of goods as part of the integration of the companies, and service agreements may be negotiated to ensure the continued provision of services during and after the acquisition.

User Nuxibyte
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