A __________ Occurs When Minority Shareholders Are Forced to Convert

question 17

Multiple Choice

A __________ occurs when minority shareholders are forced to convert their shares into cash,for example,when a subsidiary merges with its parent.

• A) hostile takeover
• B) sale of assets
• C) freeze-out
• D) tender offer

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Definitions:

Inferior Good

A type of good for which demand decreases as the consumer's income increases, contrasting with normal goods.

Less Durable

Describes goods or products that have a shorter usable lifespan before they degrade, wear out, or become obsolete.

Inferior Goods

Products whose demand decreases as the income of consumers increases, due to the availability of better or more desirable alternatives.

Income

The financial gain that an individual or business receives, typically through employment, investment, or business ventures.