As a Defensive Maneuver, a Firm Issues Deep-Discount Bonds That

question 28

Multiple Choice

As a defensive maneuver, a firm issues deep-discount bonds that are redeemable at par in the event of an unfriendly takeover. These bonds are an example of:

• A) Greenmail
• B) A "scorched earth" policy
• C) Crown jewels
• D) A poison put

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Definitions:

Initiates Litigation

The act of starting legal proceedings or a lawsuit against another party, typically to seek a remedy or resolve a dispute.

Constitution

The fundamental principles or established precedents according to which a state or other organization is governed.

Common Law

A system of law based on precedent and court decisions, rather than written statutes or codes.

Judicial Review

The process by which courts scrutinize the actions of the legislative and executive branches of government to ensure they are constitutional.