A Firm Votes to Require Any Proposed Merger Be Approved

question 201

Multiple Choice

A firm votes to require any proposed merger be approved by a supermajority of the shareholders. The firm has _________________ as a defensive tactic.

• A) Used its corporate charter.
• B) Relied on repurchase and/or standstill agreements.
• C) Utilized exclusionary self-tender offers.
• D) Instituted a poison pill.
• E) Created a flip-over provision.

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Definitions:

Firm

An entity like a corporation, partnership, or sole proprietorship engaged in selling goods or services for financial gain.

Price

The sum of money needed to buy a product, service, or asset.

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust to changes in the market or economic conditions.

Demand

The quantity of a product or service that consumers are willing and able to buy at various prices during a specified period of time.