Salt Corporation Wants to Acquire or Merge with Pepper Corporation

question 74

Multiple Choice

Salt Corporation wants to acquire or merge with Pepper Corporation. The board and the share?holders of Pepper are resisting. Salt should

• A) file a plan of merger with the secretary of state.
• B) file an article of merger with Pepper.
• C) make a tender offer to the shareholders of Pepper.
• D) make a tender offer to the shareholders of Salt.

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Definitions:

Lockbox System

A service provided by banks to companies for the receipt of payment from customers, involving the direct sending of payments to a location accessible by the bank, which then deposits the funds into the company's account.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Money Market Securities

Short-term debt instruments, commonly including treasury bills, commercial paper, and certificates of deposit, known for their liquidity and low-risk profile.

Lockbox System

A banking service offered to businesses for collecting payments from clients, using a dedicated post office box to accelerate the process of gathering checks.