Business Inc. acquires all of the assets of Commerce Corporation by direct purchase. Dot is a Commerce shareholder who does not approve of the deal. In most states, Dot can
A)reverse the deal so Commerce acquires all of the assets of Business.
B)insist that the companies carry out their corporate purposes.
C)demand appraisal rights.
D)require the parties to cancel the deal.

Question

Quizplus · Accepted Answer

When a company acquires all the assets of another, shareholders who do not approve of the deal, like Dot, typically have the right to demand appraisal rights. This means they can request that their shares be bought out at a fair value, rather than being forced to go along with the deal. This does not reverse or cancel the deal, nor does it ensure the companies carry out their corporate purposes in any specific way.