Which of the Following Is Not a Correct Description of a Defensive

question 27

Multiple Choice

Which of the following is not a correct description of a defensive strategy to a tender offer?

• A) Selling a crown jewel refers to a sale by the target corporation of an asset that was particularly attractive to the tender offeror.
• B) A white knight merger refers to a merger with a different purchaser that is friendlier toward management than the company that made the tender offer.
• C) A poison pill is a strategy built into contracts,bylaws,and so forth,that can make any purchase of the corporation more expensive,such as leases that automatically expire upon the purchase and would require renegotiation,likely at a higher price.
• D) Under a standstill agreement,shareholders holding a large number of shares of the target corporation agree that none of them will sell to the tender offeror,even if the tender offeror raises the offer price.
• E) A greenmail payment is a payment,usually at greater than fair market value,made by the target corporation to the tender offeror for shares already owned by the tender offeror in exchange for the tender offeror dropping the tender offer.

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Definitions:

Emotion-Focused Coping

A coping mechanism where individuals reduce stress by managing the emotions that the stressor has caused rather than confronting the root problem directly.

Three-Dimensional Scheduling

A method of planning that incorporates not only the sequence and duration of tasks but also considers their spatial arrangement or allocation of resources in three dimensions.

Type B Behavior

A personality type characterized by a relaxed, non-competitive, and less stress-prone pattern of behavior.

Competitiveness

The inclination to strive for success or superiority over others in scenarios that involve a comparison of performance.