Fact Pattern 31-7 Enchilada Inc

question 4

Multiple Choice

Fact Pattern 31-7 Enchilada Inc. seeks to purchase a substantial number of the voting shares of Fajita Inc .
Refer to Fact Pattern 31-7. Enchilada deals directly with the shareholders of Fajita. Enchilada offers a price higher than the market price of Fajita's shares. This is

• A) a poison pill.
• B) a tender offer.
• C) a self-tender.
• D) a breach of the business judgment rule.

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Definitions:

Financially Successful

Describes a state or condition where sufficient wealth has been accumulated to surpass one's needs and desires, often through effective financial management.

Bankruptcy

A legal process through which individuals or businesses unable to meet their financial obligations can relieve their debts, often resulting in the liquidation or reorganization of assets.

Intellectual Property

Property that is created through the mental skills of a person.

Unique Human Thought

The original or distinctive ideas generated by individuals, reflecting creativity and innovation.