Apps Inc Decides to Combine Its Operations with Beta Company to to Form

question 48

Multiple Choice

Apps Inc. decides to combine its operations with Beta Company to form Computer Software Inc. Apps and Beta are domestic corporations. Before a vote is taken on the proposed combination, sufficient information to evaluate the deal must be given to each corporation's

• A)shareholders.
• B)creditors.
• C)officers and other employees.
• D)none of the choices.

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Definitions:

Borrow

The act of receiving something with the intention of returning it or its equivalent to the owner at a later date.

Preferred Stock

Preferred stock is a type of equity that typically gives its holders preference over common stockholders in terms of dividends and claims on assets in the event of liquidation, but usually does not carry voting rights.

Rate of Return

The financial outcome, whether positive or negative, on an investment over a set duration, highlighted as a percentage of the investment's initial expenditure.

Dividend

Earnings handed out by a corporation to its investors, generally as a profit distribution.