The "Joining Threshold" Is

question 34

Multiple Choice

The "joining threshold" is

• A) the total number of people who can join a specific coalition.
• B) the level where a minimum number of people have joined a coalition and others begin to join because they recognize that their current friends and associates are already members.
• C) the minimum number of people required for a coalition to be successful.
• D) the level at which a new member must "pay" in order to join the coalition.
• E) None of the above defines the joining threshold.

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Definitions:

Equity Ownership

The possession of shares in a company, which represent a claim on the company's assets and earnings.

Poison Pill

A defensive strategy employed by a company's management to prevent or deter hostile takeovers by making the company less attractive to the potential acquirer.

Flip-over Provision

A defensive strategy in a company's charter to deter hostile takeovers, allowing shareholders to buy shares at a discount if a single buyer acquires a significant portion of the company.

Share Rights Plan

A defense strategy used by corporations to deter hostile takeovers, allowing existing shareholders the right to purchase additional shares at a discount.