Question
Big Corp's. Board of Directors decides to buy all of the shares of Small Corp. for cash.The transaction is not material to Big Corp.Which of
Big Corp's. Board of Directors decides to buy all of the shares of Small Corp. for cash.The transaction is not material to Big Corp.Which of the following is true?
Group of answer choices
The directors of Big Corp. can approve the transaction without shareholder involvement.
The Model Business Corporation Act does not recognize transactions conducted between large corporations when the effect is to seize the corporate opportunity of a much smaller corporation
Shareholders of Small Corp. must be paid a premium on their shares.
This transaction may be invalid if it freezes out minority shareholders
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