Exam 29: Corporate Acquisitions and Multinational Corporations

Anenta Energy is looking to take over Futurum Windpower largely in order to procure Futurum's state of the art windmill design.In an attempt to defend itself from this takeover,Futurum sells its windmill design to another company.In this scenario,the windmill design is an example of a ________.

In a share exchange,the subsidiary corporation becomes the sole shareholder of the parent corporation.

A tender offer is an offer that an acquirer makes directly to a target corporation's shareholders in an effort to acquire the target corporation.

In a tender offer situation,the party that is proposed to be acquired is referred to as the ________.

In a ________,a target corporation is acquired by a friendly party that promises to leave the target corporation or its management intact.

A ________ is a situation in which one corporation is absorbed into another corporation and ceases to exist.

The ________ 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.

________ are often used to create holding company arrangements.

A corporation that owns shares of the subsidiary corporation in a share exchange is referred to as the ________ corporation.

________ are defensive strategies that are built into the target corporation's articles of incorporation,corporate bylaws,or contracts and leases.

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 an example of a ________.

What is a similarity between a branch office and a subsidiary of a multinational corporation?

A proxy contest happens when insurgent shareholders challenge the incumbent directors.

With respect to the Williams Act,the pro rata rule holds that ________.

The ________ is an amendment to the Securities Exchange Act of 1934 that specifically regulates tender offers.

There is no liability shield between the corporation and the branch office.

Which of the following is a similarity between Section 14(a)of the Securities and Exchange Act and the Williams Act?

Which of the following is true of a proxy contest?

Given that shareholder resolutions have a slim chance of being adopted,explain why such resolutions are sponsored and submitted despite their low success rates.

A corporation is liable for the contracts of its subsidiary.