Examlex

Solved

Firms Use Both the

question 61

Multiple Choice

Firms use both the
And
Models. In fact,these models complement each other in that one focuses
Outside the firm while the other focuses inside the firm.


Definitions:

Hostile Takeover

An acquisition attempt by a company or individual that is strongly opposed by the target company's management and board of directors.

Equity Carve-out

A corporate strategy where a company sells a portion of the equity of a wholly owned subsidiary or division through an initial public offering.

Spin-off

A type of corporate restructuring where a company creates a new independent company by selling or distributing new shares of its existing business.

Lockup Transaction

Agreements restricting company insiders from selling their shares for a set period after an initial public offering to prevent a sudden oversupply of stock.

Related Questions