Exam 38: Corporate Acquisitions and Multinational Corporations

Which of the following is true of a share exchange?

The ________ is a federal law that mandates the president of the United States to suspend, prohibit, or dismantle the acquisition of U.S.businesses by foreign investors if there is credible evidence that the foreign investor might take action that threatens to impair the "national security."

Hostile tender offers are tender offers made without the permission of the target company's management.

The federal proxy rules promote ________ during proxy solicitation.

________ refers to the purchase by a target corporation of its stock from an actual or perceived tender offeror at a premium.

A corporation that uses subsidiary corporations to operate in more than one country cannot be termed as a multinational corporation.

What does the Delaware Antitakeover Statute provide? How can an acquirer evade the restrictions imposed by this statute?

The Delaware antitakeover statute provides that an acquirer of a Delaware corporation cannot complete a merger with the acquired corporation for three years after purchasing 15 percent or more of the Delaware corporation's shares.

In a proxy contest, only the incumbent directors are permitted to solicit proxies from shareholders.

The Williams Act is an amendment to the Securities Exchange Act that specifically regulates tender offers.

Which of the following is true of a branch office of a multinational corporation?

A friendly merger of two corporations is not considered an acquisition.

________ are made without the permission of the target company's management.

Courts are permitted to order a new election in case of fraudulent proxy solicitation.

In the context of proxy solicitation information, which of the following is prohibited by Section 14(a)of the Securities Exchange Act?

Section 14(e)protects shareholders from fraud committed in connection with a tender offer.

Shareholder resolutions cannot be made when a corporation is soliciting proxies from its shareholders.

________ are the rights of shareholders who object to a proposed merger to have their shares valued by the court and receive cash payment of this value from the corporation.

A shareholder can only submit a resolution to be considered by other shareholders if he or she has 1 percent or more of the total shares of the company.

Which of the following best defines a merged corporation?