One of Your Corporate Clients Comes to You Asking for Advice

question 20

Essay

One of your corporate clients comes to you asking for advice regarding a proposed merger with XYZ Company. You (a)issue an opinion concerning the FMV of XYZ, (b)prepare pro forma financials for the merged entity to be, (c)draft shareholder resolutions for your client approving the proposed merger, (d)file a shareholder proxy statement with the U.S. Securities and Exchange Commission, and (e)advise your client's board of directors concerning the advantages of a Type A versus a Type B reorganization. Which of these activities, if any, constitutes the unauthorized practice of law?

Understand the concept and definition of power in organizational contexts.

Identify and differentiate the five bases of individual power.

Examine how different bases of power influence employee effectiveness.

Analyze the application of power bases in various organizational scenarios.

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Definitions:

Earnings Per Share

A financial ratio that measures the portion of a company's profit allocated to each outstanding share of common stock, indicating the company's profitability on a per-share basis.

Dividends Per Share

The amount of declared dividends for every share of common stock, indicating the dividend payout to shareholders.

Return On

generally starts a financial metric indicating the efficiency of an investment or comparing the efficiency of several investments, measuring profit in relation to capital invested.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, often referred to as shareholders' equity.