ANY Corporation has made a public offer to all the shareholders of Buyer,Inc.,to buy their shares at a stated price.This activity is known as a:
A) leveraged buyout.
B) tender offer.
C) target bid.
D) merger.

Question

Quizplus · Accepted Answer

A tender offer is a public offer made by a company or a third party to purchase the shares of a publicly traded company at a premium over the current market price. This offer is made directly to the shareholders, bypassing the management of the target company. A leveraged buyout involves acquiring a company with a significant amount of debt, whereas a target bid is the price offered by a potential acquirer for a target company. A merger is a combination of two or more companies into a single entity.

ANY Corporation Has Made a Public Offer to All the Shareholders