a) A minority shareholder who has a drag-along right is entitled to: sell her shares to the majority shareholders at a pre-agreed price. buy the shares of the majority shareholders at a pre-agreed price. sell her shares along with and at the same terms and conditions as the majority shareholders. force other shareholders to sell their shares along with her if certain conditions are met. None of the above. b) The purpose of a negative pledge on the borrower's assets in an unsecured bank loan agreement is to ensure that the loan is senior to other loans of the borrower. ensure that the loan is subordinated to other loans of the borrower. prevent the borrower from issuing any bonds in the future. ensure that the borrower cannot subsequently take up other loans with a different lender, securing the subsequent loan with the borrower's assets. ensure that the borrower cannot subsequently lend money to other firms without insisting on collaterals to secure the loan.
a) A minority shareholder who has a drag-along right is entitled to: sell her shares to the majority shareholders at a pre-agreed price. buy the shares of the majority shareholders at a pre-agreed price. sell her shares along with and at the same terms and conditions as the majority shareholders. force other shareholders to sell their shares along with her if certain conditions are met. None of the above. b) The purpose of a negative pledge on the borrower's assets in an unsecured bank loan agreement is to ensure that the loan is senior to other loans of the borrower. ensure that the loan is subordinated to other loans of the borrower. prevent the borrower from issuing any bonds in the future. ensure that the borrower cannot subsequently take up other loans with a different lender, securing the subsequent loan with the borrower's assets. ensure that the borrower cannot subsequently lend money to other firms without insisting on collaterals to secure the loan.
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 3RP
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a) A minority shareholder who has a drag-along right is entitled to:
- sell her shares to the majority shareholders at a pre-agreed price.
- buy the shares of the majority shareholders at a pre-agreed price.
- sell her shares along with and at the same terms and conditions as the majority shareholders.
- force other shareholders to sell their shares along with her if certain conditions are met.
- None of the above.
b) The purpose of a negative pledge on the borrower's assets in an unsecured bank loan agreement is to
ensure that the loan is senior to other loans of the borrower.
ensure that the loan is subordinated to other loans of the borrower.
prevent the borrower from issuing any bonds in the future.
ensure that the borrower cannot subsequently take up other loans with a different lender, securing the subsequent loan with the borrower's assets.
ensure that the borrower cannot subsequently lend money to other firms without insisting on collaterals to secure the loan.
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