Down River Markets Has Decided to Acquire a Controlling Interest

question 59

Multiple Choice

Down River Markets has decided to acquire a controlling interest in Blue Jays by purchasing shares of stock in the public markets.Which of the following statements correctly apply to this acquisition?
I.The purchase of publicly-traded shares may be more expensive than an outright merger with Blue Jays would have been.
II.Down River Markets can avoid dealing with the board of directors of Blue Jays by purchasing shares in this manner.
III.If Down River Markets is successful in acquiring at least 80 percent of the outstanding shares of Blue Jays,the remaining shareholders in Blue Jays will be forced to also sell their shares to Down River Markets.
IV.Whether or not Down River Markets gains control of Blue Jays depends upon the willingness of Blue Jays shareholders to sell their shares.

• A)I and III only
• B)II and IV only
• C)I, II, and IV only
• D)I, II, and III only
• E)I, II, III, and IV

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Definitions:

Spouse

A partner in marriage or a civil union, often sharing social, legal, and financial responsibilities.

Probate

The legal process by which a deceased person's will is validated and their property is distributed to heirs.

Individual

Referring to a single human being as distinct from a group, class, or family, emphasizing personal identity and autonomy.

Property

Legal rights or interests in tangible or intangible assets, such as land, buildings, or intellectual property.