On the Day a Tender Offer Begins

question 3

Multiple Choice

On the day a tender offer begins,

• A)greenmail must be sent to the SEC.
• B)a bidder must file a disclosure statement with the SEC.
• C)assets of the target corporation must be locked up until an inventory is completed.
• D)the SEC issues a binding order to the target company to file audited financial statements to the bidder.

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Definitions:

Perpetual Inventory System

An inventory accounting system that records goods transactions in real-time.

FOB Shipping Point

A shipping term indicating that the buyer assumes responsibility for the goods and the associated costs once the goods leave the seller's premises.

Ending Inventory

Ending inventory is the total value of all inventory, including raw materials, work-in-progress, and finished goods, that a company has at the end of an accounting period.

FOB Destination

A shipping term indicating that the seller bears delivery costs and risks until the goods reach the buyer's specified location.