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:

Mood Contagion

The phenomenon where an individual's mood or emotions can influence those of others around them.

Normative Social Influence

The effect of other individuals that causes us to comply in order to gain their affection and acceptance.

Public Conformity

The act of altering one's behavior or beliefs to match those of others, often in response to perceived social pressure.

Group Judgment

The collective decision-making process or conclusion reached by a group rather than by an individual, often influenced by group dynamics.