With Respect to the Williams Act,the Pro Rata Rule Holds

question 74

Multiple Choice

With respect to the Williams Act,the pro rata rule holds that ________.

• A) a parent company must purchase shares from its subsidies on a pro rata basis if there are too many subsidies involved
• B) a target company must sell its crown jewels to multiple friendly parties on a pro rata basis if too many crown jewels are owned by it
• C) stock holders of a company must be apportioned voting power on a pro rata basis if there are too many candidates to choose
• D) a target company's shares must be purchased by an acquiring company on a pro rata basis if too many shares are tendered

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Definitions:

Vena Cava

The two large veins (the superior vena cava and the inferior vena cava) that carry deoxygenated blood from the body back to the heart.

Atrioventricular Valve

One of the two valves that separate the atrium and the ventricle in the heart, preventing backflow of blood.

Inferior Vena Cava

The large vein that carries de-oxygenated blood from the lower and middle parts of the body into the right atrium of the heart.

Valves

Structures in the heart and veins that maintain blood flow in one direction, preventing backflow.