Which of the Following Would Shareholders Regard as Being an Unacceptable

question 6

Multiple Choice

Which of the following would shareholders regard as being an unacceptable reason for a takeover?

• A)Increased market power.
• B)Increase managerial perquisites.
• C)Cost reductions.
• D)Use of excess liquidity or free cash flows.

---

Definitions:

Account Type

A classification that defines the nature and features of a financial account, such as checking, savings, or investment accounts.

Practitioner

A professional engaged in the practice of a particular occupation or profession, often in healthcare.

Open-Book Account

An account that is open to charges made occasionally as needed.

Charges

Fees or payments required for services, or the formal accusations of wrongdoing.