List and Briefly Describe Three Defense Strategies That the Target

question 71

Essay

List and briefly describe three defense strategies that the target firm may use against an unfriendly acquiring firm.

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Definitions:

Cumulative Voting

A voting system used in corporate elections that allows shareholders to concentrate their votes on a single candidate rather than distributing them among multiple candidates.

Proxy Voting

The process by which shareholders vote on company matters through a representative rather than in person.

Shareholders

Individuals or entities that own shares in a company, making them partial owners of the company.

Board of Directors

A group of individuals elected to represent shareholders and make major decisions regarding the company's management, operations, and financial policy.