When Is a Company Susceptible to a Hostile Takeover

question 92

Multiple Choice

When is a company susceptible to a hostile takeover?

• A) When a bull market is in effect
• B) When stock prices are high, but assets are decreasing
• C) When stocks are low priced, but assets have high value
• D) When the international market is in recession
• E) When angel investors demand repayment of their venture capital

---

Definitions:

Equitable Theory

A branch of law that is concerned with fairness and justice, often applied when traditional legal remedies are inadequate.

Donee Beneficiary

A third party who benefits from a contract, although not one of the principals to the contract.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, intended to standardize legal statutes across states.

Sale of Goods

A transaction where the ownership of tangible personal property is transferred from one party to another, usually in exchange for a price.