Which of the Following Statements Is True Regarding the Corporations

question 31

Multiple Choice

Which of the following statements is true regarding the Corporations Act 2001 on takeovers?

• A)A market takeover announcement can only be undertaken if either the offeror or target is a member of the ASX.
• B)In a formal takeover,the target company must produce a Part A statement whilst the offeror must produce a Part B statement.
• C)A bidder in a partial takeover must specify at the outset the proportion of each shareholder's shares that the bidder will offer to buy.
• D)The acquisition of additional shares in a company is prohibited if it results in a shareholder being entitled to more than 20% of voting shares.

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Definitions:

Earnings Per Share

A measure of a company's profitability calculated as net income divided by the number of outstanding shares of its common stock.

Treasury Shares

Shares of a company's own stock that it has repurchased and are held in the company's treasury.

Treasury Stock

Stocks that a company originally issued and then bought back, which decreases the number of shares available for trade in the market.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest.