Generic Company owns 70% of ABC Company, the acquisition of the remaining 30% of ABC Company is best described as:
A) fairness opinion.
B) short-form merger.
C) minority freeze-out.
D) going private transaction.

Question

Quizplus · Accepted Answer

The acquisition of the remaining 30% of ABC Company by Generic Company, which already owns 70%, is best described as a minority freeze-out. This term refers to a situation where the majority shareholder forces the minority shareholders to sell their shares, often at an unfair price or under unfavorable conditions.

Generic Company Owns 70% of ABC Company, the Acquisition of the Remaining