The correct option is c. a sale of substantially all of the corporate assets.
Beth could normally exercise appraisal rights if Cotton participates in sale of substantially all of the corporate assets.
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What are appraisal rights?</h3>
The legal right of a company's board of directors to have a court action or independent appraiser establish an acceptable stock price and compel the purchasing corporation to buy shares at a certain price is known as an appraisal right.
Some key features regarding appraisal rights are-
- A company's shareholders have the legal right to request a judicial procedure or an independent valuation of a company's shares in order to establish the stock price's fair market value. This legal right is known as an appraisal right.
- When their firm is being acquired and merged and the shareholders feel that the price being given is too low, they often use their appraisal rights.
- The fair price can be calculated using a variety of valuation techniques, such as asset-based approaches, income and cash flow methods, comparative market indicators, hybrid methods, and formula methods.
- Important investor rights like appraisal rights shield shareholders' investments from unfair, opportunistic, or poorly timed bids for their shares.
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The complete question is -
Beth is a shareholder of Cotton Clothes, Inc., whose management is considering extending its operations through some type of combination or acquisition with Denim Jeans Corporation. Beth could normally exercise appraisal rights if Cotton participates in
a. none of the choices.
b. a termination.
c. a sale of substantially all of the corporate assets.
d. a tender offe
Answer:
Journal entry
Explanation:
The journal entry is as follows
Cash $1,323
Service charge expense ($1,350 × 2%) $27
To Sales Revenue $1,350
(Being the cash is recorded)
for recording this transaction we debited the cash and expenses as it increase both balances while at the same time the sales revenue is also increased so it is credited
Answer:
True
Explanation:
In contract law and civil law, the duty to mitigate damages refers to the duty that the individual responsible for the wrongdoing must carry out to limit the harm or injury caused by him/her. The duty to mitigate applies both for contract breaches and victims or torts.
Answer: 6%
Explanation:
Given that,
Rate of depreciation = 5% per year
Population growth rate (n) = 4% per year
Growth rate of technology (g) = 2% per year
Steady state growth rate of output = n + g
= 4% + 2%
= 6%
Therefore, the steady-state growth rate of output is 6%.
Answer:
There are three important factors for fraud which are motive, opportunity and rationalization.
Explanation:
The three factors are also known as the fraud triangle, presence of all three factors is important to commit fraud absence of any one may result in reduction in chances of fraud but it is not completely eliminated. Motive is the need for money or some basic necessity due to which a person is forced to commit fraud. Opportunity is the chance available to commit a fraud. Rationalization is a mindset of a person which justifies his/her acts.