Bagels & Donuts Corporation wants to purchase all of the assets of Coffee & Tea Inc. Dana is a Coffee & Tea shareholder. The approval of Dana and other Coffee & Tea shareholders is necessary
A) in all circumstances.
B) in no circumstances.
C) only if Coffee & Tea will be paid with unauthorized, unissued stock.
D) only if Bagels & Donuts agrees to assume Coffee & Tea's liabilities.

Question

Bagels & Donuts Corporation wants to purchase all of the assets of Coffee & Tea Inc. Dana is a Coffee & Tea shareholder. The approval of Dana and other Coffee & Tea shareholders is necessary​
A) ​in all circumstances.
B) ​in no circumstances.
C) ​only if Coffee & Tea will be paid with unauthorized, unissued stock.
D) ​only if Bagels & Donuts agrees to assume Coffee & Tea's liabilities.

Quizplus · Accepted Answer

Shareholders of a company must approve the sale of all or substantially all of the company's assets. Therefore, the approval of Dana and other Coffee & Tea shareholders is necessary in all circumstances.

Bagels & Donuts Corporation Wants to Purchase All of the Assets