Which of the Following Statements Is Incorrect

question 10

Multiple Choice

Which of the following statements is incorrect?

• A) A mutual-to-stock conversion allows savings institutions to obtain additional capital by issuing stock.
• B) Because of their ownership structure, mutual savings institutions are more susceptible to unfriendly takeovers.
• C) When a mutual savings institution is involved in an acquisition, it first converts to a stock-owned savings institution.
• D) Consolidation and acquisitions have caused the number of mutual and stock savings institutions to decline consistently over the years.

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Definitions:

Fundamental Breach

A severe violation of a contract that allows the aggrieved party to terminate the agreement and possibly seek damages.

Strict Interpretation

The judicial practice of applying a narrow, literal, and precise reading of legal texts or statutes.

Force Majeure Clause

A contract term anticipating some catastrophic event usually exempting liability when such an event interferes with performance of the contract.

Catastrophic Event

An unexpected, large-scale disaster that causes significant -physical, economical or environmental damage or loss of life.