Which of the Following Is the Best Definition of a Control

question 188

Multiple Choice

Which of the following is the best definition of a control block?

• A) An interest controlling 50 percent of outstanding votes plus one; thereby it may decide the fate of the firm.
• B) Corporate takeover bid communicated to the shareholders by direct mail.
• C) A merger in which a new firm is created and both the acquired and acquiring firm cease to exist.
• D) The splitting up of a company into two or more companies.
• E) The distribution of shares in a subsidiary to existing parent company shareholders.

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Definitions:

Inelastic Demand

A situation where the quantity demanded of a good or service changes little when its price changes.

Elastic Demand

A situation where the demand for a good or service significantly changes in response to changes in price.

Income Elastic

Describes a good or service for which demand changes significantly when consumer incomes change, indicating a strong connection between income level and purchasing behavior.

Income Inelastic

Referring to goods or services whose demand does not significantly change as people's income levels change.