Which of the Following Actions Does NOT Help Managers Defend

question 13

Multiple Choice

Which of the following actions does NOT 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) Retiring long-term debt early to reduce total debt on the balance sheet which will increase the firm's financial position.
• E) Finding a "white squire" that will buy enough of the target firm's shares to block the hostile takeover.

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Definitions:

Group

Two or more people who share a common definition and evaluation of themselves and behave in accordance with such a definition.

Social Group

describes a collection of individuals who share some form of interaction, common goals, or a sense of belonging, typically characterized by social cohesion and group identity.

Interaction

The reciprocal action or influence between two or more entities or substances, often leading to a specific outcome.

Entitativity

The perception or degree to which a group is seen as a coherent, unified entity.