The Directors of Acme Corp

question 9

Multiple Choice

The directors of Acme Corp. unanimously approved a merger agreement between Acme and Generic Inc. The Model Business Corporation Act (MBCA) is in effect in the state where both corporations are incorporated. The two corporations begin performing the various duties set out in the merger agreement. Certain shareholders of Acme then institute suit in an effort to block the merger. The shareholders maintain that the proposed merger should have been submitted to them for approval. Nothing in Acme's articles of incorporation requires the directors to submit such matters to the shareholders. The directors claim that the merger was carefully considered and is in the best interests of the corporation. Under these circumstances, _____.

• A) the directors will prevail if they can prove that the merger was in the corporation's best interests
• B) the shareholders will be successful in their suit because under the MBCA, approval of all classes of shares is required for a merger or consolidation
• C) the directors will prevail because the MBCA gives them the right to overrule the shareholders' decisions in mergers
• D) the shareholders will not be successful in their suit because the directors have acted in the best interests of the corporation

Understand the concept and application of force field analysis in change management.

Learn about the significance of environmental and technological changes in the process of refreezing.

Grasp the concept of logical incrementalism and its application in organizations.

Appreciate the importance of involving employees in the change process and the potential consequences of neglecting this.

---

Definitions:

Decision-Making

The process of making choices by identifying a decision, gathering information, assessing alternatives, and arriving at a conclusion.

Basic Steps

Fundamental phases or actions that are essential in initiating or completing a process or procedure.

Escalating Commitment

The phenomenon where individuals or organizations continue to invest time, money, or resources into a failing decision or project, often due to prior investments.

Tort Law

The area of law that deals with civil wrongs, including negligence, defamation, and intentional acts that result in harm or injury to another.