Under the Securities Exchange Act of 1934 and the Williams

question 61

Multiple Choice

Under the Securities Exchange Act of 1934 and the Williams Act, a tender offer:

• A) must be disclosed if the offeror's acquisition would give him 3 percent of the target's stock.
• B) must be disclosed only to the shareholders of the target corporation.
• C) disclosure is informational to ensure that investors may make an informed decision.
• D) None of these are correct.

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Definitions:

Economic Order Quantity (EOQ)

A formula that calculates the optimal order size to minimize the total costs associated with purchasing, receiving, and holding inventory.

Carrying Cost

Carrying cost includes expenses associated with holding or storing inventory, such as insurance, storage, and opportunity costs.

Annual Demand

Annual demand refers to the total quantity of a product or service that consumers are willing and able to purchase over a year.

Average Collection Period

The average time it takes for a business to collect payments owed by its customers.