In Defending Against a Hostile Takeover, the Strategy That Involves

question 42

Multiple Choice

In defending against a hostile takeover, the strategy that involves the target firm creating securitiesthat give their holders certain rights that become effective when a takeover is attempted is called the __________strategy.

• A) shark repellent
• B) golden parachute
• C) greenmail
• D) poison pill

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Definitions:

Loan

A sum of money that is borrowed, typically from a financial institution, which is expected to be paid back with interest.

Writ of Attachment

A legal document issued by a court that allows for the seizure of property before the finalization of a lawsuit to secure the potential judgment.

Judgment

A formal decision or order given by a court following a legal proceeding.

Seizure

The act of taking possession of an item, property, or individual by legal authority as a result of a law violation or court order.