A Change to the Corporate Charter That Requires That Any

question 32

Multiple Choice

A change to the corporate charter that requires that any merger must be approved by a supermajority of shareholders is known as:

• A) an LBO.
• B) a proxy contest.
• C) a carve-out.
• D) a shark-repellent.

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Definitions:

Accounting and Financial Reporting

The process of recording, summarizing, and reporting the financial transactions of a business to provide an accurate picture of its financial position and performance.

Liability

Anything owed to creditors—the claims of a company’s creditors.

Creditors

Individuals or institutions to whom money is owed by a debtor or borrower.

Business

Organizational entities that are involved in the trade of goods, services, or both to consumers, with the primary purpose of earning profits.