Defensive Merger Tactics Are Designed to Thwart Unwanted Takeovers and Mergers

question 75

Essay

Defensive merger tactics are designed to thwart unwanted takeovers and mergers. Do such activities work to the advantage of stockholders all of the time?
Are these types of activities ethical?
Who do you think benefits most from these activities?

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Definitions:

Bait-And-Switch

A deceitful sales tactic where a customer is lured by an advertisement for a low-priced item but then is persuaded to buy a more expensive one.

Advertise

The act of promoting products, services, or brands to potential customers through various media.

Expensive Item

An object that is high in price or costs a significant amount of money, often implying it is of high quality or value.

Federal Hazardous Substances Act

A United States federal law that regulates the labeling and handling of hazardous substances to ensure consumer safety.