The Transformation of a Public Corporation into a Private Company

question 75

Multiple Choice

The transformation of a public corporation into a private company by the employees of the corporation itself is called a(n)

• A) management buyout
• B) employee stock ownership plan
• C) reverse LBO
• D) reverse merger

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Definitions:

Promissory Estoppel

Promissory estoppel is a legal principle that allows a party to recover on a promise made without a formal contract, provided they have relied on that promise to their detriment.

Implied Contract

An agreement created by actions of the parties involved, not written or spoken, but inferred from their conduct.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States to standardize and simplify interstate commerce.

Innocent Consumer

A consumer who purchases or uses products or services without awareness of any wrongdoing or defects associated with them.