A May Issue Its Shares to Acquire the Shares of B

Multiple Choice

A may issue its shares to acquire the shares of B. However, because of the greater number of A shares given to the former B shareholders relative to those held by the shareholders in A before the combination, the former shareholders in B may have the majority of shares in A and be able to determine the operating and financial policies of the combined entities. This is known as a:

A) Reverse acquisition.
B) Goodwill gesture.
C) Hostile takeover.
D) Contingent consideration.