The Rare Event in Which a Firm's Existing Directors and Management

question 43

Multiple Choice

The rare event in which a firm's existing directors and management compete with outsiders for the effective control of the corporation is called a

• A)majority vote.
• B)supermajority amendment.
• C)proxy contest.
• D)merger.

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Definitions:

Exculpatory Clause

A statement in a contract that frees one party (usually the drafter of the agreement) from all liability arising out of performance of the contract, generally based on factors such as consumer ignorance or a great deal of unexplained fine print that serve to deprive the less powerful party of a meaningful choice.

Age of Majority

The legal age at which an individual is considered capable of entering into contracts and other legal bindings, marking the transition into legal adulthood.

Necessity

A concept in law and ethics that allows for actions under exceptional circumstances, typically for immediate need or survival.

Restitution

The act of compensating for loss, damage, or injury caused, typically in legal contexts.