The Key to Extracting Private Benefits of Control That Are

question 86

Multiple Choice

The key to extracting private benefits of control that are not shared by other shareholders on a pro rata basis is to

• A)become a large shareholder and acquire control rights exceeding cash flow rights.
• B)buy a large block of nonvoting shares.
• C)sell your shares in a tender offer.
• D)force the firm into bankruptcy.

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Definitions:

Explanation

The act of making something clear or understandable by describing the relevant facts or ideas.

Social Reinforcements

Positive or negative stimuli provided by others that increase the likelihood of a behavior being repeated.

Helplessness Theory

A psychological theory suggesting that individuals who believe they have no control over negative events are more likely to feel helpless and develop depressive symptoms.

Gender Differences

The distinctions in characteristics and behaviors typically associated with being male or female, influenced by biological, psychological, and cultural factors.