Examlex

Solved

Company a Makes an Offer to Purchase All of the Shares

question 5

Multiple Choice

Company A makes an offer to purchase all of the shares of Company B from Company B's shareholders. The board of directors of Company B does not feel that the offer is adequate and seeks out another purchaser who might offer more for the shares. This defence to the takeover is referred as:


Definitions:

Capital Contributions

Funds or assets provided by owners or investors to increase a company's capital.

Capital Account

An account on a nation's balance of payments that records transactions involving the acquisition or disposal of assets.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Related Questions