A Rights Offering That Gives Existing Target Shareholders the Right

question 51

Multiple Choice

A rights offering that gives existing target shareholders the right to buy shares in either the target or the acquirer at a deeply discounted price once certain conditions are met is called a:

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

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Definitions:

Skimming Pricing Strategy

A pricing approach where a relatively high price is set for a new product or service at its launch to maximize profitability before aiming at more price-sensitive customers.

Odd Pricing Strategy

A pricing strategy where prices are set slightly below a round number, e.g., $19.99, to make products appear less expensive.

Standardization

The process of implementing and developing technical standards to maximize compatibility, efficiency, and quality among products and systems.

Differentiation

A marketing strategy where a company designs its products or services to be unique and attractive to a specific customer segment, setting it apart from competitors.