Business 2 Test 2 - 1. In an ordinary merger, if the number...

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1. In an ordinary merger, if the number of voting shares increases by 20 percent or less, this eliminates which needed approvals when compared to ordinary mergers where the number of shares increases by more than 20 percent? A) Shareholders and the board of the corporation that does not survive. B) Shareholders and the board of directors of the surviving corporations. C) Shareholders of both corporations. D) The approval requirements are the same whether the increase in voting shares of the surviving corporation is more or less than 20 percent. E) Shareholders of the surviving corporation. 2. Kennedy Corporation has an old plant that is currently exceeding the sulfur dioxide emissions level set by the Clean Air Act. Kennedy cannot afford to reduce production enough to come into compliance. What alternatives does Kennedy have? A) Kennedy can buy pollution credits from either another company or the U.S. government. B) Kennedy has no alternative but to reduce emissions. C) Kennedy can buy pollution credits from the U.S. government. D) Kennedy can buy pollution credits from another company that has such credits. 3. Which of the following statements best describes the procedures under the Clean Air Act? A) Both the federal and state governments set standards and each enforces its own standards. B) The federal government sets and enforces the standards. C) The state governments set the standards; the federal government enforces the standards; if the federal government does not adequately enforce the standards, the states may enforce them. D) The state governments set and enforce the standards. E) The federal government sets the standards; the state governments enforce the standards; if the states do not adequately enforce the standards, the federal government may enforce them. 4. Solicitation of proxies is regulated under: A) the Proxy Solicitation Act of 1968. B) the Securities Act of 1933. C) the Williams Act. D) the Uniform Commercial Code.
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E) the Securities Exchange Act of 1934. 5. Under what circumstances can management recover from the corporation the costs it incurs in a proxy contest? A) In all proxy contests involving issues of policy that management wins, but never for contests involving personal issues. B) Under all circumstances. C) In all proxy contests management wins. D) In all proxy contests involving issues of policy, whether or not management wins. E) In all proxy contests involving issues of policy, and in the case of contests concerning personal matters, if management wins. 6. Which of the following items is not required to be included in a registration statement? A) Description of how the proceeds are to be used B) Description of the issuer's business C) Audited (certified) financial statements D) Description of the securities E) The price at which the securities will sell 7. Which of the following is true about restraints of trade? A) Under the rule of reason, all restraints of trade are illegal.
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Business 2 Test 2 - 1. In an ordinary merger, if the number...

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