What Is the Business Strategy Involving a Defensive Tactic Against

question 18

Multiple Choice

What is the business strategy involving a defensive tactic against a hostile takeover where severance packages involving enormous sums are approved by the Board of Directors to be paid to senior managers in the event of dismissal because of a takeover known as?

• A) Poison pill
• B) White knight
• C) Golden parachute
• D) Pac-man defense
• E) Boomerang Liability

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Definitions:

Nonmonetary Asset

Assets that cannot be easily converted into cash and hold value in forms other than currency, such as property, equipment, and patents.

Boot

In finance and real estate, boot refers to cash or other property added to an exchange or transaction to make it equitable.

Carrying Amount

The value of an asset or liability according to a company's balance sheet, factoring in depreciation, impairment, and amortization.

List Price

The manufacturer's suggested retail price of a product before any discounts or allowances are taken into account.