The Court in the Cohen V

question 76

Multiple Choice

The court in the Cohen v. Mirage Resorts, Inc. case stated:

• A) a claim brought by a dissenting shareholder that questions the validity of a merger as a result of wrongful conduct on the part of majority shareholders or directors is properly a derivative suit.
• B) a shareholder who opposes a merger must either accept the terms of the merger and exchange their shares for new shares or dissent from the merger and forfeit their stock.
• C) minority shareholders may challenge the merger process if it is procedurally deficient or if fraud affected the shareholder vote on the merger.
• D) minority shareholders have no right to sue to enjoin or rescind an invalid merger, but must be satisfied with money damages.

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Definitions:

Financially Successful

A state or condition of having significant income, profit, or assets, exceeding financial liabilities and obligations.

Concert Arena

A large, usually indoor area designed to host musical concerts, sporting events, or other performances, often with significant seating capacity.

Survivor Bias

A logical error that involves focusing on the surviving subjects of a process or people who made it past some selection process, thereby unintentionally overlooking those who did not due to their lack of visibility.

Unrepresentative Sample

A sample that does not accurately reflect the demographics or characteristics of the larger population from which it is drawn.