By Takeover Constraint, We Mean

question 11

Multiple Choice

By takeover constraint, we mean

• A)constraints placed by the firm on raiders who want to take over the firm.
• B)legal constraints that limit the ability of the raiders to acquire a firm.
• C)provisions in the charter of a company that prevents it from attempting a takeover of other companies.
• D)the risk of being acquired by a hostile raider.

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Definitions:

Ownership Right

A legal right that confers the possession of assets and the benefits that come from owning them.

Stockholder

An individual or entity that holds one or more shares of stock in a public or private corporation, thus owning a portion of the company.

Dividends

Payments made by a corporation to its shareholder members from the company's earnings.

Chief Accounting Officer

The Chief Accounting Officer (CAO) is a senior executive responsible for managing the accounting operations of an organization.