An Outside Organization Trying to Gain Control of a Corporation

question 56

Multiple Choice

An outside organization trying to gain control of a corporation offers a _____ by announcing its intent to purchase up to a certain number of the target's shares at a premium over their market price.

• A)proxy fight
• B)cash tender
• C)junk bond
• D)leveraged buyout

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Definitions:

Adam Smith

An 18th-century Scottish economist and philosopher, often considered the father of modern economics, best known for his work "The Wealth of Nations."

Specialization

The process by which individuals, businesses, or economies focus on producing a limited range of goods or services to gain efficiencies.

Total Output

The total amount of goods or services produced by an economy or firm within a specific period.

Specialization

The practice of focusing production on a limited range of goods or services to gain efficiency.