When a Hostile Takeover Appears to Be Inevitable,a Target Company

question 36

Multiple Choice

When a hostile takeover appears to be inevitable,a target company will sometimes look for another,friendlier company to acquire it called a:

• A)poison pill.
• B)classified board.
• C)golden parachute.
• D)white knight.

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Definitions:

Merger Clause

A provision in a contract stating that the agreement is the complete and final agreement between the parties, superseding all oral or written agreements made prior.

Statute Of Frauds

A legal doctrine requiring certain contracts to be in writing and signed by the parties involved, to be enforceable.

Admission

The act of conceding to a point in an argument or acknowledging the truth of a claim, or the allowance into a place, organization, or institution.

Parol Evidence Rule

A legal principle that prevents parties from presenting extrinsic evidence to modify, vary, or contradict the terms of a written contract.