Which of the following is the best definition of a control block?

Multiple Choice

• An interest controlling 50 percent of outstanding votes plus one; thereby it may decide the fate of the firm.

• Corporate takeover bid communicated to the shareholders by direct mail.

• The splitting up of a company into two or more companies.

• The distribution of shares in a subsidiary to existing parent company shareholders.

• A merger in which a new firm is created and both the acquired and acquiring firm cease to exist.