One method of taking a publicly held corporation private,by forcing minority shareholders to accept cash or property for their shares,is a(n):
A) appraisal remedy.
B) cash-out combination.
C) management buyout.
D) tender offer.

Question

Quizplus · Accepted Answer

The method described in the question, which involves forcing minority shareholders to sell their shares for cash or property, is known as a cash-out combination. This is a type of corporate merger where the acquiring company buys out the minority shareholders of the target company, who do not wish to hold the new, combined stock. A management buyout involves the existing management team of the target company buying it out completely, while a tender offer is an offer made by a company to acquire a significant portion or all of the outstanding stock of another company, usually at a premium to market price. An appraisal remedy is a legal means for a shareholder to challenge the price paid for their shares in a takeover or other transaction.

One Method of Taking a Publicly Held Corporation Private,by Forcing