A __________ occurs when minority shareholders are forced to convert their shares into cash,for example,when a subsidiary merges with its parent.
A) hostile takeover
B) sale of assets
C) freeze-out
D) tender offer

Question

Quizplus · Accepted Answer

A freeze-out occurs when minority shareholders are forced to convert their shares into cash, typically in situations where a subsidiary merges with its parent or in situations where the majority shareholders use their voting power to force the minority shareholders out. A hostile takeover involves an attempt to take control of a company without the approval of its board of directors. Sale of assets refers to the process of selling the company's assets to generate revenue or pay off debts, while a tender offer involves an attempt to buy a significant amount of a company's shares from its shareholders.

A __________ Occurs When Minority Shareholders Are Forced to Convert