Java Corporation wants to purchase all of the assets of Kaffee Corporation.Loki is a Kaffee shareholder.The approval of Loki and other Kaffee shareholders is necessary
A)in all circumstances.
B)in no circumstances.
C)only if Kaffee will be paid with unauthorized,unissued stock.
D)only if Java assumes Kaffee's liabilities as part of the deal.

Question

Quizplus · Accepted Answer

Shareholders are owners of the company and have the right to approve any major decisions or transactions involving the company. Selling all assets to another corporation qualifies as a major decision, which means the approval of the shareholders is necessary.

Java Corporation Wants to Purchase All of the Assets of Kaffee