What Term Is Used If a Takeover Goes Against the Wishes

question 111

Multiple Choice

What term is used if a takeover goes against the wishes of the target company's management and board of directors?

• A) vertical merger
• B) friendly takeover
• C) horizontal merger
• D) hostile takeover

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Definitions:

Joint Arrangements

Agreements between two or more parties that establish joint control over economic activities.

Tax Purposes

Refers to reasons or activities related to the calculation and payment of taxes.

Investments

Assets purchased with the expectation that they will generate income or appreciate in the future.

Subsidiaries

Companies that are controlled by another company, known as the parent company, through ownership of more than 50% of the subsidiary's voting stock.