All of the Following Statements Are True About the Use

question 27

Multiple Choice

All of the following statements are true about the use of defense tactics by the target firm during a hostile takeover EXCEPT defense tactics:

• A) are usually beneficial for the executives of the target firm.
• B) are opposed by institutional investors.
• C) vary in their effectiveness as a defense to takeovers.
• D) make the costs of a takeover lower.

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Definitions:

Product/Service Quality

The measure of how well a delivered product or service meets the customer's expectations.

Planning Process

A systematic approach to defining goals, developing strategies, and outlining tasks and schedules to achieve the goals.

Competitive Niche

A specialized segment of the market for a particular kind of product or service where a business can achieve a dominant position.

Strategic Management Tool

Instruments, frameworks, or methodologies used by individuals and organizations to analyze, plan, and execute strategies aimed at achieving competitive advantage.