Question 1

Incumbent directors are the former directors of a corporation.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is true of a subsidiary of a multinational corporation present in a foreign country?

Accepted Answer

A) The subsidiary corporation is organized under the laws of the foreign country. 
B) There is no liability shield between the parent company and the subsidiary. 
C) The parent company is wholly responsible for torts committed by the subsidiary. 
D) The subsidiary corporation is not considered as a separate legal entity. 
A) The subsidiary corporation is organized under the laws of the foreign country. 
B) There is no liability shield between the parent company and the subsidiary. 
C) The parent company is wholly responsible for torts committed by the subsidiary. 
D) The subsidiary corporation is not considered as a separate legal entity.

Question 3

Explain the factors that lead to a proxy contest.What is its outcome?

Accepted Answer

One or more shareholders may oppose the

Question 4

Section 14(a)of the Securities Exchange Act of 1934 is a(n)________.

Accepted Answer

A) investment provision 
B) antifraud provision 
C) share exchange provision 
D) antitakeover statute 
A) investment provision 
B) antifraud provision 
C) share exchange provision 
D) antitakeover statute

Question 5

What is a proxy? State the federal rules that govern a proxy statement.

Accepted Answer

A proxy is a written document that is co

Question 6

Section 14(a)of the Securities Exchange Act of 1934 requires the disclosure of the identities of the parties involved in a tender offer.

Accepted Answer

A) True 
 B)False

Question 7

List out the strategies a company can use in defending against hostile tender offers.

Accepted Answer

(a)Persuasion of shareholders
(b)Delayin

Question 8

A merger occurs when one corporation enters into a permanent business partnership with another corporation.

Accepted Answer

A) True 
 B)False

Question 9

The incumbent management cannot issue additional shares in the market to defeat a hostile tender offer.

Accepted Answer

A) True 
 B)False

Question 10

The ________ states that any increase in price paid for shares tendered must be offered to all shareholders, even those who have previously tendered their shares.

Accepted Answer

A) pro rate rule 
B) fair price rule 
C) Williams Act 
D) antifraud provision of the SEC 
A) pro rate rule 
B) fair price rule 
C) Williams Act 
D) antifraud provision of the SEC

Question 11

Greenmail refers to a target corporation's purchase of its stock from an actual or perceived tender offeror at a premium.

Accepted Answer

A) True 
 B)False

Question 12

The corporation that owns the shares of the subsidiary corporation in a share exchange is known as the ________.

Accepted Answer

A) surviving corporation 
B) parent corporation 
C) sole proprietor 
D) primary partner 
A) surviving corporation 
B) parent corporation 
C) sole proprietor 
D) primary partner

Question 13

Which of the following is true of proxies?

Accepted Answer

A) Proxies are not permitted to be submitted electronically. 
B) Proxies are signed by a corporation and sent to shareholders. 
C) Directors or officers of the corporation cannot hold proxies. 
D) Corporations are permitted to solicit proxies from shareholders. 
A) Proxies are not permitted to be submitted electronically. 
B) Proxies are signed by a corporation and sent to shareholders. 
C) Directors or officers of the corporation cannot hold proxies. 
D) Corporations are permitted to solicit proxies from shareholders.

Question 14

Shareholders are permitted to submit issues for a vote of other shareholders.

Accepted Answer

A) True 
 B)False

Question 15

A short-form merger does not require the approval of the board of directors of the subsidiary corporation.

Accepted Answer

A) True 
 B)False

Question 16

Instaworks Inc.wants to acquire IOK Corp.Instaworks makes a tender offer to the shareholders of IOK to acquire their shares of IOK without the permission of the latter corporation's board of directors.This is a ________ tender offer.

Accepted Answer

A) cogent 
B) single-point 
C) persuasive 
D) hostile 
A) cogent 
B) single-point 
C) persuasive 
D) hostile

Question 17

The pro rata rule states that any increase in price paid for shares tendered must be offered to all shareholders, even those who have previously tendered their shares.

Accepted Answer

A) True 
 B)False

Question 18

A proxy contest is one in which incumbent directors are impeached.

Accepted Answer

A) True 
 B)False

Question 19

Shareholder approval is required to make fundamental changes in a corporation.

Accepted Answer

A) True 
 B)False

Question 20

A merged corporation ceases to exist after the merger.

Accepted Answer

A) True 
 B)False

Exam 38: Corporate Acquisitions and Multinational Corporations

Incumbent directors are the former directors of a corporation.

Which of the following is true of a subsidiary of a multinational corporation present in a foreign country?

Explain the factors that lead to a proxy contest.What is its outcome?

Section 14(a)of the Securities Exchange Act of 1934 is a(n)________.

What is a proxy? State the federal rules that govern a proxy statement.

Section 14(a)of the Securities Exchange Act of 1934 requires the disclosure of the identities of the parties involved in a tender offer.

List out the strategies a company can use in defending against hostile tender offers.

A merger occurs when one corporation enters into a permanent business partnership with another corporation.

The incumbent management cannot issue additional shares in the market to defeat a hostile tender offer.

The ________ states that any increase in price paid for shares tendered must be offered to all shareholders, even those who have previously tendered their shares.

Greenmail refers to a target corporation's purchase of its stock from an actual or perceived tender offeror at a premium.

The corporation that owns the shares of the subsidiary corporation in a share exchange is known as the ________.

Which of the following is true of proxies?

Shareholders are permitted to submit issues for a vote of other shareholders.

A short-form merger does not require the approval of the board of directors of the subsidiary corporation.

Instaworks Inc.wants to acquire IOK Corp.Instaworks makes a tender offer to the shareholders of IOK to acquire their shares of IOK without the permission of the latter corporation's board of directors.This is a ________ tender offer.

The pro rata rule states that any increase in price paid for shares tendered must be offered to all shareholders, even those who have previously tendered their shares.

A proxy contest is one in which incumbent directors are impeached.

Shareholder approval is required to make fundamental changes in a corporation.

A merged corporation ceases to exist after the merger.

Legal Heritage and the Digital Age

Courts and Jurisdiction

Judicial,Alternative,and E-Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crimes

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

E-Commerce and Digital Law

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, Defenses, and Discharge

Banks, E-Money, and Financial Reform

Credit,Mortgages,and Debtor's Rights

Secured Transactions and E-Filing

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, Agents, and Independent Contractors

Employment, Worker Protection, and Immigration Law

Labor Law and Collective Bargaining

Equal Opportunity in Employment

Small Business, Entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, E-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property and Bailment

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants' Duties and Liability

Wills Trusts and Estates

Family Law

International and World Trade Law

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