Which of the following is the best definition of a control block?
A) An interest controlling 50 percent of outstanding votes plus one; thereby it may decide the fate of the firm.
B) Corporate takeover bid communicated to the shareholders by direct mail.
C) A merger in which a new firm is created and both the acquired and acquiring firm cease to exist.
D) The splitting up of a company into two or more companies.
E) The distribution of shares in a subsidiary to existing parent company shareholders.

Question

Quizplus · Accepted Answer

A control block refers to a significant portion of a company's shares that is large enough to exert control over the company's decisions. This typically means owning more than 50% of the voting shares, allowing the holder to influence or determine the outcome of corporate votes and decisions.

Which of the Following Is the Best Definition of a Control