Some Freight Line Express Shareholders Are Very Dissatisfied with the Performance

question 72

Multiple Choice

Some Freight Line Express shareholders are very dissatisfied with the performance of the firm's current management team.These shareholders want to gain control of the board of directors so they can have the power to oust current management.As a means of gaining control,these shareholders have select candidates for all of the open positions on the firm's board of directors.Since they have insufficient votes to guarantee the election of these individuals,they are contacting other shareholders and asking them to vote with them on this important matter.Of course,the current management team is encouraging shareholders to vote for their candidates for the board.Which one of the following terms is best illustrated by this situation?

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

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Definitions:

Past Behaviour

Actions or reactions displayed by an individual or organization in previous situations, often used as an indicator for future performances.

Cross-Validation

Verifying the results obtained from a validation study by administering a test or test battery to a different sample (drawn from the same population)

Original Validation Study

A research endeavor that aims to determine the effectiveness and accuracy of a tool, test, or process for the first time.

Myers-Briggs Type Indicator

A psychometric questionnaire designed to measure psychological preferences in how people perceive the world and make decisions.