Publicly traded to make regular periodic filings with SEC

Assignment Help Operation Management

Reference no: EM132159205

1. RayCorp offers to buy out MegaCorp by paying $69 per share. LandCo, who also wants to buy MegaCorp, offers to pay $75 per share. When the bidding process is finally over, RayCorp has offered $85 per share and LandCo has offered to pay $90 per share. MegaCorp agrees to sell to RayCorp on grounds that, all things considered, the takeover by RayCorp would be better for the business. LandCo claims that MegaCorp should have sold the company to it since it was the highest bidder. Is LandCo correct?

a. Yes. This is a breach of duty. MegaCorp must sell the company to the highest bidder; it cannot give preferential treatment to a lower bidder.

b. No. This is covered by the Williams Act.

c. No. The directors have broad discretion in deciding to whom to sell the company.

d. None of the above.

2. The 1934 Act requires companies with a class of stock that is publicly traded to make regular periodic filings with the SEC.

True

False

3. Generally, managers that make informed decisions will not be liable even if their decision turned out badly.

True

False

4. Brad, Carlos and Dora are general partners in Eastside Physicians, a medical clinic. The partners decide to dissolve Eastside Physicians. Dora collects and distributes the firm's assets. This results in:

a. the temporary suspension of the firm's business.

b. the termination of the firm's legal existence.

c. no change in the firm's existence.

d. the continuation of the firm's existence.

5. If a principal accepts the benefits of an unauthorized contract, the principal is deemed to have ratified the contract and is bound as if the act had been originally authorized.

True

False

Reference no: EM132159205

Questions Cloud

Quality is important for health services managers : Based on oberservations describe why understanding quality is important for health services managers?

What is meant by the term piercing the corporate veil : What is meant by the term "piercing the corporate veil"? A partnership is a taxable entity, separate from the partners.

Corporation must obtain shareholder approval : A corporation must obtain shareholder approval before the company:

Submitting resolution that are social or political in nature : Shareholders are prohibited from submitting resolutions that are social or political in nature.

Publicly traded to make regular periodic filings with SEC : The 1934 Act requires companies with a class of stock that is publicly traded to make regular periodic filings with the SEC.

Feature of the securities exchange act : Which of the following is a feature of the Securities Exchange Act of 1934 but not the Act of 1933?

The potential for prm to be source of competitive advantage : What is the potential for PRM to be a source of competitive advantage? List the pros and cons of a centralised vs a decentralised returns chain.

The guiding principal of federal securities law : The guiding principal of federal securities law is. Corporate officers who, in good faith, enter into an ultra vires transaction are not held personally liable.

What is johnson most pressing problem : What is Johnson’s most pressing problem? Why?.

User Account

All Pages