When the Management of the Target Corporation of a Tender

question 43

Multiple Choice

When the management of the target corporation of a tender offer opposes the tender offer,it can:

• A) purchase the shares of its shareholders as treasury stock,but little more
• B) petition the Securities and Exchange Commission to have the offer voided
• C) exercise its appraisal rights
• D) petition the board of directors to adopt a resolution prohibiting sale by the shareholders to the entity who made the tender offer
• E) none of the above

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Definitions:

Economic Activity

The actions that involve the production, distribution, and consumption of goods and services within an economy.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

Equation of Exchange

An economic identity that represents the relationship between the money supply, its velocity, the price level, and the number of transactions conducted, often formulated as MV = PQ.

Identity

The characteristics, attributes, or qualities that make a person or thing unique and distinguishable from others.