In Order to Exercise the Appraisal Right Where a Shareholder

question 72

Multiple Choice

In order to exercise the appraisal right where a shareholder is opposed to a merger,the shareholder must:

• A) give the corporation notice of demanding cash payment for the shares,with the notice given prior to the vote on the matter
• B) notify the corporation of the amount that the shareholder is demanding as cash payment for the shares
• C) not vote in favor of the proposed merger
• D) A and C only

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Definitions:

Minimum Price

A minimum price is the lowest legal price that can be charged for a good or service, set by government regulations to ensure fair practices and prevent market abuses.

Long Run

A period in which all factors of production and costs are variable, and companies can adjust all inputs to the production process.

Market Price

The actual selling price of a good or service in the marketplace, determined by supply and demand.

Price Takers

Market participants who accept prevailing prices because they have no power to influence the market price due to their small market share.