Which document outlines the terms of a take-over bid?

• A. Directors' Report
• B. Take-over Bid Circular
• C. Annual Financial Statement
• D. Investment Prospectus

Answer: (B)

The Take-over Bid Circular is the document that outlines the terms of a take-over bid. This circular provides essential information to shareholders about the offer, including details such as the price being offered for the shares, the timeline for the bid, the conditions attached to the bid, and any relevant information that might affect a shareholder's decision on whether to accept the offer. It's designed to ensure transparency and compliance with regulatory requirements, thereby helping shareholders make informed decisions.

The other documents mentioned serve different purposes. The Directors' Report typically summarizes the company's performance and projections from the perspective of its management, while the Annual Financial Statement is a comprehensive record of the company’s financial performance over the past year. An Investment Prospectus, on the other hand, is intended to provide potential investors with detailed information about a new investment opportunity, such as an upcoming public offering, but does not specifically address the terms of a take-over bid.