What is a tender offer? X An acquiring corporation asks shareholders of the target corporation to offer their stock for sale. The shareholders of the acquiring corporation offer their shares for sale to shareholders of the target corporation. The shareholders of the acquiring corporation purchase all of the assets of the target corporation. The shareholders of a target corporation form alliances and via shareholder voting eliminate the board of directors so that they may offer the positions to members of the acquiring corporation.

What is a tender offer? X An acquiring corporation asks shareholders of the target corporation to offer their stock for sale. The shareholders of the acquiring corporation offer their shares for sale to shareholders of the target corporation. The shareholders of the acquiring corporation purchase all of the assets of the target corporation. The shareholders of a target corporation form alliances and via shareholder voting eliminate the board of directors so that they may offer the positions to members of the acquiring corporation.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following statements is true related to the conversion of a regular corporation to a limited liability company taxed as a partnership? A. In the conversion of a C corporation to an LLC taxed as a partnership, the transfer of appreciated assets from the liquidating corporations is not taxed at the corporate level. B. The corporation can contribute it's assets and liabilities into the new LLC in exchange for ownership interests. The corporation then distributes the LLC interests to it's shareholders in liquidation of the shareholders corporate stock. C. If the corporation distributes it's assets and liabilities to it's shareholders in liquidation of the new corporation, the shareholders are restricted from contributing these assets into the new partnership. D. The existence of substantially appreciated intangibles and goodwill with little or no tax basis has no consequences when converting a C corporation to an LLC
The ability of any stockholder to transfer stock to another person without the knowledge or the consent of the other stockholders and without disturbing the normal activities of the corporation is called a. unlimited life. b. suitability for large scale operations. c. taxation of corporate earnings. d. transferable ownership units.
Will an acquiring corporation recognize gain or loss when it issues its stock to acquire the assets or stock of target corporation in a reorganization? Explain how it will work. How do exchanging shareholders and security holders determine their basis for the stock and securities received in a corporate reorganization? Give an example
Which business entity could have common stock authorized? O A. a sole proprietorship O B. a partnership O C. a limited liability company O D. a corporation O E. All of the above could theoretically have common stock authorized.
In a _____, the managers of the firm purchase the outstanding shares and take the firm private. Select one: a. asset acquisition b. vertical acquisition c. proxy contest d. tender offer e. management buyout
Which of the following characteristics of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation? a. Separate legal entity b. Separation of ownership and management c. Transferability of ownership d. Limited liability
all of the following are true about the issuance of non-voting common stock except a. it has been issued when the corporation wishes to raise capital through the sale of common stock but does not want to relinquish its voting control o b. it has been issued as a defense against an unfriendly takeover c it tends to result in the dilution of voting rights of current stockholders od. it tends to result in unequal voting rights among the shareholders
True or False: An S Corporation will not be treated as having more than one class of stock solely because of differences in voting rights (i.e. both voting and non-voting common stock).
Who is liable for a corporation's debts and obligations? OA. the limited partners OB. the general partners OC. the corporation OD. the registered agent OE. the shareholders
Which of the following describes preferred stock? a. Stock that sells for a very high price b. Stock that is sold to employees of the company as a performance incentive c. Stock which gives shareholders certain preferences and advantages over common stock d. Stock that is purchased by the corporation for investment purposes
Explain how purchase accounting is implementedin a merger. Does the accounting profession nowrequire this method? How is any premium that theacquiring firm paid over the acquired firm’s bookvalue treated subsequent to a merger?
Which of the following statements are true regarding corporations? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. It has many of the same rights as an individual. The sale of shares from one stockholder to another does not impact operations. An exception is when it changes the makeup of directors. Stockholders are expected to hire and fire key executives. It does not end with the death of an owner. Corporate income that is distributed to shareholders is usually taxed twice. Corporations are often subject to fewer regulations than partnerships. The president and vice presidents choose the board of directors.