What Would Be the Balance in the Investment in 123

question 30

Multiple Choice

What would be the balance in the investment in 123 Inc. accounts after the sale?

• A) $100,000.
• B) $150,000.
• C) $210,000.
• D)$225,000.

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Definitions:

Defensive Tactic

Strategies employed by companies to prevent or deter unwanted takeover bids or corporate raiders.

Flip-Over Provision

This provision is a defensive strategy used by companies in their shareholder rights plans to deter hostile takeovers, allowing shareholders to buy shares of the acquirer at a discount after the takeover.

White Knight

A friendly investor or company that acquires a corporation at fair consideration, often to prevent a hostile takeover.

Unfriendly Suitor

A company or individual that makes a takeover attempt on another company without the consent or cooperation of the target company’s management.