Exam 38: Corporate Acquisitions and Multinational Corporations

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

Appraisal rights require shareholders who object to the sale of the property of a company to forfeit their shares.

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

Section 14(a)of the Securities Exchange Act gives the Securities and Exchange Commission (SEC)the authority to regulate ________.

A shareholder is permitted to submit a resolution to be considered by other shareholders only if he or she ________.

Incumbent directors are the former directors of a corporation.

Which of the following best defines a surviving corporation?

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

Mr.Davidson,who owns 17 percent of his company's shares,is displeased with the six incumbent directors of the corporation.He proposes a slate of directors consisting of five other persons and himself to become members of the board of directors of the corporation and replace the incumbent directors.In the proxy contest,Mr.Davidson manages to acquire proxies from shareholders who control only 35 percent of the company's shares.Which of the following is true in this context?

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

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.

A subsidiary corporation ceases to exist after a share exchange.

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

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.

In a share exchange,one corporation ends up owning all the shares of the other.

Karlovsky and Sons Inc.,a retail corporation,reports financial losses for three years in a row.Two larger corporations,Gatsby Retail Inc.and Chelsea Sales Corp.compete to acquire Karlovsky and Sons.Initially,Chelsea places a higher bid than Gatsby Retail but eventually backs out of the merger.In the end,a Boston-based multinational company (MNC)named J.Y.Corp.acquires Karlovsky and Sons and permits the latter to expand as a wholesaler.Which of the following is the surviving corporation in this scenario?

Which of the following defines a proxy contest?

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

Which of the following is true of proxies?

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