Question

A bank is initiating the process of acquiring another smaller bank. Before negotiations happen between the organizations, which of the following business documents would be used as the FIRST step in the process?

A. MOU
B. OLA
C. BPA
D. NDA

Answer 1

The first step in the process of a bank acquiring another bank is the Memorandum of Understanding.

Step-by-step explanation:

The correct answer is A. MOU, which stands for Memorandum of Understanding. An MOU is a non-binding agreement that outlines the terms and conditions of a potential business transaction. It helps establish the intentions of both parties and sets the stage for further negotiations. In the context of a bank acquiring another bank, an MOU would serve as the first step in the process to indicate mutual interest and lay the groundwork for more detailed discussions.