logo image

blaw chapter 34

If a court determines that a manager’s corporate decision amounted to self-dealing,
the business judgment rule will not apply.
Directors have the authority to manage the corporate business.
true
A manager who has engaged in self-dealing has violated the duty of loyalty to the corporation, unless the self-dealing was entirely fair to the corporation.
true
On the day a tender offer begins,
a bidder must file a disclosure statement with the SEC.
Alex is a director of ABC, Inc. Alex wants to personally make a major purchase from Bravo Co. If it knew of the opportunity, ABC might be also interested in making that same purchase. Alex must
first offer the opportunity to make the purchase to the disinterested directors of ABC or its shareholders.
Which of the following describes the duty of loyalty?
It prohibits managers from making a decision that benefits them at the expense of the corporation.
A director violates the corporate opportunity doctrine if he or she competes with the corporation, unless the disinterested directors approve of the director’s actions.
true
Which of the following takeover defenses is evidenced by the target buying back the shark’s stock at a premium price?
greenmail
In order to use poison pills, staggered boards of directors, and supermajority voting as takeover defenses, they must first be authorized by the shareholders.
true
A speculator plans to acquire control of Kelp Corporation and then resell it at a profit. A speculator is sometimes known as a corporate raider.
true
Generally, managers that make informed decisions will not be liable even if their decision turned out badly.
true
Amy is on the board of directors of Computers Plus. Computers Plus is looking for a warehouse to purchase. Amy owns a warehouse. In order for Amy to sell her warehouse to Computers Plus
the disinterested members of the board of directors must approve the transaction.
What is a “scorched earth strategy”?
A defensive takeover strategy where the target sells off the assets that the takeover company most wants.
Which of the following statements is correct with respect to state efforts to offer protection to companies targeted for hostile takeovers?
Both statutory law and the state courts have provided some degree of protection for companies.
For the business judgment rule to apply, the manager must
have acted in the best interests of the corporation.
Which of the following is NOT a method to acquire control of a company?
make an initial public offering
Tender offers are regulated on the federal level by the National Labor Relations Act.
false
States are not involved in the regulation of corporate takeovers.
false
Which of the following is correct concerning anti-takeover efforts?
Most states have passed laws to deter hostile takeovers, but these statutes have not totally eliminated hostile takeovers.
The Williams Act
is designed to regulate the conduct of those attempting to take over a company.
The “business judgment rule” has been replaced by “good faith statutes” in most states.
false
Anti-takeover tactics include all EXCEPT
negative tender offers
Which of the following is a fundamental goal of shareholders?
To have an immediate increase in stock price
A public offer to buy a block of stock directly from shareholders is called a tender offer.
true
The Anderson v. Bellino case held that
the defendant did not act in good faith and violated the corporate opportunity doctrine.

Need essay sample on "blaw chapter 34"? We will write a custom essay sample specifically for you for only .90/page

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
×
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register
Signup & Access Essays

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
|
Complete Buyer Protection
|
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy