The Third State Bank of Laramie Has Opened an Office

question 61

Multiple Choice

The Third State Bank of Laramie has opened an office in Morocco.This office does not take deposits but makes commitments to make loans,issues letters of credit,and provides technical assistance to companies in Morocco.What type of office has the Third State Bank of Laramie opened in Morocco?

• A)A representative office
• B)An agency office
• C)A branch office
• D)A subsidiary
• E)An export trading company

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Definitions:

Control Block

An interest controlling 50% of outstanding votes plus one; thereby it may decide the fate of the firm.

Corporate Takeover

The acquisition of one company by another, either through direct purchase or through the accumulation of a majority of its stock shares.

Distribution

The process of delivering products or services from the producer to the final consumer.

Greenmail

A targeted stock repurchase where payments are made to potential bidders to eliminate unfriendly takeover attempts.