A fiRm Votes to Require Any Proposed Merger Be Approved

question 25

Multiple Choice

A firm votes to require any proposed merger be approved by a supermajority of the shareholders.
The firm has _________________ as a defensive tactic.

• A) Used its corporate charter.
• B) Relied on repurchase and/or standstill agreements.
• C) Utilized exclusionary self-tender offers.
• D) Instituted a poison pill.
• E) Created a flip-over provision.

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Definitions:

Obtain Capital

The act of securing funds or resources to finance business operations, typically through borrowing, equity investment, or earnings.

Limited Liability

A legal structure that limits the financial responsibility of owners or shareholders to the amount they invested in the business, protecting personal assets from company debts and liabilities.

Share Transferability

The ease with which shares of a company can be bought, sold, or transferred among individuals or entities.

Taxation

An area of public accounting involving tax advice, tax planning, preparing tax returns, and representing clients before governmental agencies.