Firms Use Defensive Tactics to Fight Off Undesired Mergers

question 47

Multiple Choice

Firms use defensive tactics to fight off undesired mergers. These tactics include which of the following?

• A) developing poison pills
• B) getting white knights to bid for the firm
• C) repurchasing their own stock
• D) developing poison pills, getting white knights to bid for the firm, and repurchasing their own stock

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Definitions:

Low Risk

Pertaining to situations, investments, or activities that have a minimal chance of negative outcomes or losses.

High Deductible

Refers to health insurance plans with higher deductible amounts, meaning the insured must pay more out-of-pocket before insurance coverage starts.

High Quality

A characteristic of products or services that meet or exceed customer expectations and are superior in terms of durability, reliability, or performance.

Expensive Engagement Ring

A high-cost ring typically given as a symbol of betrothal.