Some Freight Line Express Shareholders Are Very Dissatisfied with the Performance

question 72

Multiple Choice

Some Freight Line Express shareholders are very dissatisfied with the performance of the firm's current management team.These shareholders want to gain control of the board of directors so they can have the power to oust current management.As a means of gaining control,these shareholders have select candidates for all of the open positions on the firm's board of directors.Since they have insufficient votes to guarantee the election of these individuals,they are contacting other shareholders and asking them to vote with them on this important matter.Of course,the current management team is encouraging shareholders to vote for their candidates for the board.Which one of the following terms is best illustrated by this situation?

• A)tender offer
• B)proxy contest
• C)going-private transaction
• D)leveraged buyout
• E)consolidation

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Definitions:

Human Resources

The division of a business that deals with finding, screening, recruiting, and training job applicants, as well as managing employee-benefit programs.

Employee Confidentiality

The principle of keeping sensitive information about employees secure and private within an organization.

Employee Assistance Program

A workplace initiative offering confidential support and counseling for employees facing personal or work-related problems.

Specialists

Professionals with a high degree of knowledge or expertise in a specific field.