A Change in the Corporate Charter Making It More Difficult

question 77

Multiple Choice

A change in the corporate charter making it more difficult for the firm to be acquired by increasing the percentage of shareholders that must approve a merger offer is called a:

• A)supermajority amendment.
• B)standstill agreement.
• C)greenmail provision.
• D)poison pill amendment.
• E)white knight provision.

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Definitions:

Pure Monopolist

A market participant that is the sole seller of a product or service, having significant control over its price.

Marginal Cost

Marginal cost is the additional cost incurred by producing one more unit of a good or service, a critical concept for understanding production decisions.

Output Increment

The increase in output that results from employing an additional unit of input, reflecting the productivity of the input in the production process.

Pure Monopolist

A single seller in a market who has exclusive control over a particular good or service and is the only one to provide that good or service.