In Terms of Shareholder Approval Requirements, the Main Difference Between

question 18

Multiple Choice

In terms of shareholder approval requirements, the main difference between a cash transaction and a share transaction is:

• A)The approval of both sets of shareholders is often required for a cash transaction, but not for a share transaction.
• B)The approval of both sets of shareholders is often required for a share transaction, but not for a cash transaction.
• C)No approval is required for share transactions where the deal value is less than 50% of the value of shares outstanding.
• D)The approval of the acquiring firm's shareholders is required for a cash transaction.

---

Definitions:

Ambiguities

Unclear or indeterminate areas within a text or statement that can lead to multiple interpretations.

Divisible

Capable of being divided or separated into distinct parts without losing its inherent nature or functionality.

Promissory Estoppel

A legal principle preventing a party from withdrawing a promise if the other party reasonably relied on that promise and acted upon it to their detriment.

Part Performance

A legal doctrine that allows a court to enforce an otherwise unenforceable contract based on a party's partial completion of the contract terms.