Motor Parts Corporation offers to buy the stock of NASCAR Products Corporation (NPC). NPC's directors oppose the offer. Orin and other NPC shareholders file a suit, alleging a breach of the directors' fiduciary duties. Most likely, the court will

A. apply the business judgment rule to analyze the directors' acts.
B. dismiss the suit as a non-judicial dispute over "fair value."
C. evaluate the terms of the deal on the basis of antitrust law.
D. order the shareholders to be paid a "premium" for their stock.


Answer: A

Business

You might also like to view...

In which of the following cells in the sustainability matrix is the organization making a substantial social impact but may have inadequate funding to sustain this level of activity?

A) Cell 1 B) Cell 2 C) Cell 3 D) Cells 3 and 4 E) Cells 1 and 2

Business

A conceptual framework of accounting should

a. lead to uniformity of financial statements among companies within the same industry. b. eliminate alternative accounting principles and methods. c. guide the AICPA in developing generally accepted auditing standards. d. define the basic objectives, terms, and concepts of accounting.

Business

______ refers to a tendency to allow relatively free gratification of basic and natural human desires related to enjoying life and having fun versus a conviction that such gratification needs to be curbed and regulated by strict social norms.

a. Short-term-Long-term b. Uncertainty avoidance c. Individualism-Collectivism d. Indulgence-Restraint

Business

Which of the following is NOT among the four primary considerations when deciding which media to buy?

A) reach B) frequency C) brand D) continuity E) cost

Business