Series 79 practice questioneasyFairness Opinions
Which party is responsible for determining if a fairness opinion is needed in a merger?
- AThe board of directors of the company✓ Correct answer
- BThe company’s external auditors
- CThe Securities and Exchange Commission
- DThe shareholders via a vote
Explanation
Why A — The board of directors of the company
The board of directors decides whether to obtain a fairness opinion to support its decision-making and fiduciary duties. Neither auditors nor the SEC require such opinions, and shareholders do not vote to mandate them.
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