A Firm Can Repurchase Shares Through A(n)________ in Which It

question 88

Multiple Choice

A firm can repurchase shares through a(n) ________ in which it offers to buy shares at a prespecified price during a short time period-generally within 20 days.

• A)tender offer
• B)open market share repurchase
• C)targeted repurchase
• D)Dutch auction share repurchase

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Definitions:

Promoter

An individual or organization that helps to initiate and plan significant events, businesses, or movements.

Ratifies

The act of formally confirming or approving a decision or agreement, making it officially valid.

Preincorporation Contract

An agreement entered into on behalf of a corporation before it is legally formed.

Corporate Promoter

An individual or entity that undertakes the efforts to organize and establish a corporation, including arranging initial capital, legal requirements, and business plans.