Which of the Following Is NOT One of the Benefits

question 44

Multiple Choice

Which of the following is NOT one of the benefits of obtaining a toehold?

• A)Acquiring shares at the market price requires no premium.
• B)A toehold reduces the number of shares needed to be purchased in a later takeover bid.
• C)A toehold eliminates competition from other potential acquirers.
• D)A toehold can increase the probability of success of a later takeover.

---

Definitions:

Top Management

The highest level of management within an organization, responsible for setting strategic goals and ensuring their realization.

Adverse Behavioural Responses

Negative reactions or changes in behavior resulting from policies, actions, or conditions, often unintended consequences.

Production Budget

A financial plan that outlines the cost of producing the products a company plans to sell, including direct materials, labor, and overhead.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and considered a part of the product's cost.