When a Hostile Takeover Appears to Be Inevitable,a Target Company

question 36

Multiple Choice

When a hostile takeover appears to be inevitable,a target company will sometimes look for another,friendlier company to acquire it called a:

• A)poison pill.
• B)classified board.
• C)golden parachute.
• D)white knight.

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Definitions:

Financing Activities

Activities that result in changes in the size and composition of the equity and borrowings of a company, as reported in the cash flow statement.

Statement of Cash Flows

is a financial statement that details the inflows and outflows of cash within a company over a specific period, highlighting its operating, investing, and financing activities.

Financing Activities

Transactions with creditors or investors used to fund either company operations or expansions.

Investing Activities

Refers to the purchasing and selling of long-term assets and other investments, not including cash equivalents, which are reported in a company's cash flow statement.