Which of the Following Terms Refers to Buying Out a Hostile

question 18

Multiple Choice

Which of the following terms refers to buying out a hostile shareholder at a price far above the current price of the target company's stock in exchange for the hostile shareholder's agreement not to buy more shares for a period of time?

• A) golden parachute
• B) poison pill
• C) porcupine provision
• D) greenmail

---

Definitions:

Interest Income

Revenue earned by lending funds or through investment securities that pay interest.

Accrued Interest

Interest that has accumulated over a period but has not yet been paid or received.

Note Payable

A financial obligation represented by a written promise to pay a specified amount of money, plus interest, by a certain date or on demand.

Interest Expense

The cost incurred by an entity for borrowed funds, considered a non-operating expense on the income statement.