If a Company Owns 90 Percent or More of the Outstanding

question 60

Multiple Choice

If a company owns 90 percent or more of the outstanding shares of each class of a subsidiary company's stock,a merger may be effected with approval of the parent's board of directors alone,without resort to shareholders.This is called a:

• A) parent-sub merger.
• B) board merger.
• C) short-cut merger.
• D) short-form merger.

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Definitions:

World Price

The global price of a product or service, determined by worldwide demand and supply.

Import Quota

A government-imposed limit on the quantity or monetary value of a certain good or category of goods that can be imported into a country.

World Price

The international market price at which goods, services, or commodities are traded across countries.

Foreign Producers

Companies or individuals located outside a country's borders that produce goods or services for sale within that country.