Firelite Corporation wants to purchase all of the assets of Glo Power Products, Inc. Hadji is an Firelite shareholder. The approval of Hadji and other Firelite shareholders is necessary
A) in all circumstances.
B) in no circumstances.
C) only if Firelite plans to pay with unauthorized, unissued stock.
D) only if the purchase extends Firelite's control over more assets.

Question

Quizplus · Accepted Answer

The approval of shareholders like Hadji is necessary if Firelite plans to pay for the acquisition with unauthorized, unissued stock, as this would affect shareholder equity and require their consent.

Firelite Corporation Wants to Purchase All of the Assets of Glo