In Order to Lease Substantially All of a Corporation's Assets

question 53

Multiple Choice

In order to lease substantially all of a corporation's assets not in the usual course of business:

• A) shareholder approval is necessary.
• B) shareholder approval is required if so determined by a subjective test under the 1999 amendments to the Revised Act.
• C) approval of the board and the majority of the corporation's outstanding shares is required; dissenting shareholders do not usually have an appraisal remedy.
• D) shareholder approval is unnecessary, unlike for the sale of assets.

Understand the principles of time value of money in calculating equivalent payment streams and investment outcomes.

Apply mathematical formulas to compare investment returns and assess financial choices.

Perform calculations involving rate adjustments, such as inflation and discount rates, on financial planning.

Evaluate the financial implications of deferring payments or restructuring payment schedules.

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Definitions:

Risk-Free Rate

The theoretical return on an investment with zero risk, typically associated with government bonds.

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase an asset at a specified price within a certain time frame.

Strike Price

The predetermined price at which an option's underlying asset can be bought or sold.

Convertible Bond

A type of bond that can be converted into a predetermined number of the issuer's equity shares at certain times during its life, usually at the discretion of the bondholder.