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31.The rare event in which a firm's existing directors and

Question : 31.The rare event in which a firm's existing directors and : 1409483

 

31.The rare event in which a firm's existing directors and management compete with outsiders for the effective control of the corporation is called a: 
 
 

A. majority vote.

B. supermajority amendment.

C. proxy contest.

D. merger.

32.Different classes of stocks are usually issued in order to:

I) maintain ownership control, by holding the class of stock with greater voting rights;
II) pay less dividends to different classes of stock;
III) extract perquisites without the other class of stockholders knowing 
 
 

A. I only

B. II only

C. III only

D. I and II only

33.A grant of authority allowing someone else to vote shares of stock that you own is called:
I) repurchase agreement; II) proxy voting; III) share repurchase 
 
 

A. I only

B. II only

C. III only

D. I and III only

34.Suppose a group of outsiders solicits shareholders' authority to vote shares to replace existing management. This is called: 
 
 

A. a tender offer.

B. a proxy contest.

C. a vote of confidence.

D. greenmail.

35.In the case of Google, which has issued Class A and Class B shares:

I) both classes of shares have the same cash-flow rights;
II) both classes of shares have the same control rights;
III) both classes of shares have different cash-flow rights;
IV) both classes of shares have different control rights 
 
 

A. I and II only

B. II and III only

C. I and IV only

D. III and IV only

36.In the United States the premium that an investor needed to pay to gain voting control is: 
 
 

A. 29%.

B. 36%.

C. 2%.

D. 32%.

37.Exploitation of minority shareholders by majority shareholders is called: 
 
 

A. a reverse stock split.

B. tunneling.

C. financial engineering.

D. proxy fighting.

38.Stockholders usually have the following rights:

I) to elect board members, authorize issue of new shares, and vote on matters of great importance like mergers;
II) to share proportionally in regular and liquidating dividends;
III) to share proportionally in any new stock sold 
 
 

A. I only

B. I and II only

C. I, II, and III

D. I and III only

39.Which of the following statements about partnership and limited liability is (are) true?

I) All the partners in a partnership can have limited liability.
II) General partners in a partnership cannot have limited liability.
III) General partners in a partnership can be corporations.
IV) Only limited partners in a partnership can have limited liability. 
 
 

A. I and II only

B. I, II, and III only

C. II, III, and IV only

D. I and III only

40.The following are characteristics of preferred stock except:

I) pays fixed dividends;
II) can demand payments of cumulative dividends;
III) has voting rights 
 
 

A. I only

B. I and II only

C. III only

D. II only

 

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