Consider the Following Two Statements: (I) Making Amendments to Ensure

question 49

Multiple Choice

Consider the following two statements: (i) Making amendments to ensure a classified or staggered board is a classic way of deterring a
Takeover after the company is in play.
(ii) A standstill agreement occurs when the target, for a fee, agrees to accept the holdings of the
Acquirer.

• A)(i) is correct, (ii) is incorrect.
• B)(ii) is correct, (i) is incorrect.
• C)Both (i) and (ii) are correct.
• D)Both (i) and (ii) are incorrect.
• E)(ii) is only correct if (i) is incorrect.

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Definitions:

Pareto Efficiency

A situation where resources are distributed in such a way that improving the condition of any one individual or meeting a preference more fully would result in detriment to at least one other individual or preference.

Socially Efficient

A situation where resources are allocated in the most effective manner, maximizing overall social welfare.

Overestimates

Assessments or calculations that exceed the actual value or amount of something.

Flu Vaccine

A medical injection or nasal spray designed to protect against the influenza virus.