Some Freight Line Express shareholders are very dissatisfied with the performance of the firm's current management team. These shareholders want to gain control of the board of directors so they can have the power to oust current management. As a means of gaining control, these shareholders have select candidates for all of the open positions on the firm's board of directors. Since they have insufficient votes to guarantee the election of these individuals, they are contacting other shareholders and asking them to vote with them on this important matter. Of course, the current management team is encouraging shareholders to vote for their candidates for the board. Which one of the following terms is best illustrated by this situation?
Refer to section 26.1
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5.
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A group of individual investors is in the process of acquiring all of the publicly-traded shares of OM Outfitters. Once the shares are acquired, they will no longer be publicly traded. Which of the following terms applies to this process?
Refer to section 26.1
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6.
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The current president and vice-presidents of Mountain Top Consulting have decided to form a private investment group with the sole purpose of purchasing Mountain Top Consulting. These individuals have found a lender who will lend them 85 percent of the purchase cost if they pledge their personal assets as collateral for the loan. The current officers agree to this arrangement, borrow the funds, and purchase Mountain Top Consulting. The purchase of this firm is referred to as a:
Refer to section 26.1
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7.
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Johnson Manufacturers and Peabody Enterprises are both manufacturers of plastic products, such as plastic plates and silverware. These two firms have decided to work together to find a more efficient way to recycle rejected products so that any rejected material can be reused. Thus, each company is going to assign two of its engineers to this project and have agreed to share any and all costs incurred in this process. This project is an example of a:
Refer to section 26.1
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8.
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Diet Soda and High Caffeine are two firms that compete in the soft drink market. These two competitors have decided to invest $10 million to form a new company, Fruit Tea, which will manufacture flavored teas. This new firm is defined as a:
Refer to section 26.1
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9.
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Alliance Chemicals recently acquired Swenson Industries in a transaction that produced a NPV of $1.3 million. This NPV is referred to as:
Refer to section 26.4
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