A Rights Offering That Gives Existing Target Shareholders the Right

question 51

Multiple Choice

A rights offering that gives existing target shareholders the right to buy shares in either the target or the acquirer at a deeply discounted price once certain conditions are met is called a:

• A)golden parachute.
• B)poison pill.
• C)classified board.
• D)white knight.

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Definitions:

Other Revenues and Gains

Income generated from activities not directly related to the primary operations of a business.

Multiple-Step Income Statement

A multiple-step income statement is a more detailed financial statement that separates operating revenues and expenses from non-operating ones, providing insights into the different aspects of a company's performance.

Income From Operations

Also known as operating income, it reflects the revenue from a company's principal business activities minus its direct operating expenses (excluding non-operating income and expenses).

Other Revenues and Gains

Income from activities not related to a company's primary business operations.