An outside organization trying to gain control of a corporation offers a _____ by announcing its intent to purchase up to a certain number of the target's shares at a premium over their market price.
A)proxy fight
B)cash tender
C)junk bond
D)leveraged buyout

Question

Quizplus · Accepted Answer

This is a cash tender offer, where the outside organization is willing to pay a premium over the market price of the shares to gain control of the corporation. A proxy fight involves soliciting votes from shareholders to gain control of the corporation's board of directors. Junk bond and leveraged buyout are different methods of financing the purchase of a corporation, but do not involve making an offer to purchase shares at a premium.

An Outside Organization Trying to Gain Control of a Corporation