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) a sale of substantially all of the corporate assets.
B) a termination.
C) a tender offer.
D) none of the choices.

Question

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) ​a sale of substantially all of the corporate assets.
B) ​a termination.
C) ​a tender offer.
D) ​none of the choices.

Quizplus · Accepted Answer

Appraisal rights typically allow shareholders to demand a fair value for their shares if they disagree with certain major corporate actions, such as a sale of substantially all of the corporate assets.

Beth Is a Shareholder of Cotton Clothes, Inc