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Hostile Takeovers of Corporations Have Been in the Business News

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Essay

Hostile takeovers of corporations have been in the business news for some time now.Several states have passed laws making it harder for out-of-state corporations to acquire firms headquartered in their states.Several corporations have established "golden parachutes" to give executives high payoffs in case of hostile takeover.What market imperfection is likely to be worsened by these actions? Explain.


Definitions:

Dollar Sales

Dollar sales refer to the total value of goods or services sold by a company, stated in monetary terms.

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