Which of the Following Statements Regarding Hostile Takeovers Is True

question 46

Multiple Choice

Which of the following statements regarding hostile takeovers is true?

• A)The U.S. is the only country that permits hostile takeovers.
• B)In 2006, a law was passed prohibiting hostile takeover activity in the U.S.
• C)From 1983 to 1989, hostile takeovers represented about 50% of the total activity in any given year.
• D)Hostile takeovers, though rare, can be very large.

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Definitions:

Consumer Surplus

The distinction between the price consumers are willing to offer for a good or service and the price they really pay.

Agricultural Subsidies

Agricultural subsidies are financial incentives provided by the government to farmers or agribusinesses to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.

Tariff

A tax imposed on imported goods and services to increase their price and reduce competition with domestic industries.

Trade Restrictions

Measures imposed by governments to control the import and export of goods and services with the intention of protecting domestic industries, which can include tariffs, quotas, and other barriers.