In What Industries Would It Be Expected That Companies Would

question 4

Multiple Choice

In what industries would it be expected that companies would spend a significant amount on research and development activities?

• A) Health.
• B) Clothes retailer.
• C) Auto.
• D) Both (a) and (c).

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Definitions:

Flip-Over Provision

This provision is a defensive strategy used by companies in their shareholder rights plans to deter hostile takeovers, allowing shareholders to buy shares of the acquirer at a discount after the takeover.

White Knight

A friendly investor or company that acquires a corporation at fair consideration, often to prevent a hostile takeover.

Unfriendly Suitor

A company or individual that makes a takeover attempt on another company without the consent or cooperation of the target company’s management.

Golden Parachute

A contract provision that gives a company's executives significant benefits if they are terminated as a result of a merger or takeover.