Which of the Following Actions Does NOT Help Managers Defend

question 13

Multiple Choice

Which of the following actions does NOT help managers defend against a hostile takeover?

• A) Establishing a poison pill provision.
• B) Granting lucrative golden parachutes to senior managers.
• C) Establishing a super-majority provision in the company's bylaws to raise the percentage of the board of directors that must approve an acquisition from 50% to 75%.
• D) Retiring long-term debt early to reduce total debt on the balance sheet which will increase the firm's financial position.
• E) Finding a "white squire" that will buy enough of the target firm's shares to block the hostile takeover.

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Definitions:

Crisis Communication Plan

A strategic document or approach developed by an organization to prepare for, respond to, and recover from any emergency or unexpected event that could harm its operations, reputation, or stakeholders.

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Edelman's Trust Barometer

A global survey conducted by Edelman that measures public trust in institutions such as businesses, governments, NGOs, and media.

Integrity

The quality of being honest and having strong moral principles.