If a Company Owns 90 Percent or More of a Subsidiary's

question 76

Multiple Choice

If a company owns 90 percent or more of a subsidiary's stock, a merger may be effected with approval of the parent's board of directors alone, without resort to shareholders. This is called a:

• A) parent-sub merger.
• B) board merger.
• C) short-cut merger.
• D) short-form merger.

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Definitions:

Intentions

Plans or commitments individuals make toward achieving a specific outcome or behaving in a certain way.

Cognitive Moral Development

A theory that explains the stages through which individuals evolve in their ability to reason morally, from basic understanding to sophisticated ethical reasoning.

Social System

An organized and interdependent constellation of institutions, groups, and norms that collectively shapes the behaviors and relationships of individuals within a society.

Duty to Society

The responsibility of individuals and organizations to act in the best interests of the community at large, contributing positively to the welfare of others.