An Attempt to Gain Control of a Firm by Soliciting

question 45

Multiple Choice

An attempt to gain control of a firm by soliciting a sufficient number of equityholder votes to replace the current board of directors is called a:

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

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Definitions:

Lead Entrepreneur

The primary individual responsible for starting a new business or venture, often driving the vision and strategy forward.

Time-Sales Financing

A financing method where payments are made in installments over a predetermined time period.

Prepayment Penalties

Fees charged to borrowers for paying off a loan early, as compensation for the lender's lost interest income.

Pledge of Inventory

The use of a company's inventory as collateral to secure a loan or meet other financial obligations.