In a Merger Situation, What Is the Right of a Dissenting

question 4

Multiple Choice

In a merger situation, what is the right of a dissenting shareholder?

• A) to block the merger until satisfied regarding its terms
• B) to have its shares appraised and purchased by the corporation
• C) to enforce a consolidation instead of a merger
• D) none of the above, since dissenting shareholders have no rights with respect to a merger

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Definitions:

Financing

The act of providing funds for business activities, making purchases or investing, often involving loans, equity, or other forms of financial instruments.

High-risk Ventures

Business projects or investments that carry a significant chance of failing but may offer high rewards if successful.

Rights Offering

A method companies use to raise capital, which gives existing shareholders the right to purchase additional shares at a discounted price before the public.

Ownership Position

Ownership position refers to the holding of equity in a company or property, granting the holder rights to profits, voting, and potentially influencing management decisions.