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:

Fixed Costs

Costs that do not change with the level of output or production, such as rent, salaries, and insurance premiums.

Level Of Activity

A measure of the volume of production or operations within a business, used to allocate costs or plan for capacities.

Direct Labor Cost

The total expense incurred by a company for the wages of individuals directly involved in the production of goods or services.

Activity Level

A measure of the volume or quantity of production or operations within a specific period.