Which of the Following Actions Can Help Managers Defend Against

question 35

Multiple Choice

Which of the following actions can 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) establishing a poison pill provision, granting lucrative golden parachutes to senior managers, and 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%

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Definitions:

Resource

Assets, materials, or inputs that are available to an individual, organization, or society to produce goods and services.

Output

The total amount of goods or services produced by a company, industry, or economy.

Perfect Competitor

A hypothetical market structure in which no individual firm has any market power, allowing for an ideal level of competition where prices reflect actual costs.

Imperfect Competitor

A market participant who does not meet the conditions of perfect competition, often having some control over the price of its product or service.