When a Corporation Desires to Sell a Majority of Its

question 52

Multiple Choice

When a corporation desires to sell a majority of its assets,which of the following must it obtain?

• A)Approval from shareholders,but not from officers or its board of directors.
• B)Approval from officers,its board of directors,and shareholders.
• C)Approval from its board of directors and shareholders,but not from officers.
• D)Approval from its board of directors,but not from shareholders or officers.
• E)Approval from officers and its board of directors,but not from shareholders.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Fixed Costs

Expenses that do not change in proportion to the level of goods or services produced within a certain period.

Hurdle Rate

The minimum rate of return on a project or investment required by a manager or investor.

Cost of Capital

The rate of return that a company must earn on its project investments to maintain its market value and attract funds.