Which of the Following Statements Regarding Poison Pills Is False

question 39

Multiple Choice

Which of the following statements regarding poison pills is false?

• A) Companies with poison pills are harder to take over, and when they are taken over, the premium that existing shareholders receive for their stock is higher.
• B) Because a poison pill increases the cost of a takeover, all else equal, a target company must be in better shape to justify the expense of waging a takeover battle.
• C) Poison pills also increase the bargaining power of the target firm when negotiating with the acquirer because poison pills make it difficult to complete the takeover without the cooperation of the target board.
• D) By adopting a poison pill, a company effectively entrenches its management by making it much more difficult for shareholders to replace bad managers, thereby potentially destroying value.

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An internal network that uses wireless technology to enable employees to access information and applications without the need for wired connections.

Wi-Fi

Wireless network that connects various devices and allows them to communicate with one another through radio waves.

Wi-Max

A wireless communication standard designed to provide high-speed internet access over long distances, primarily in wireless broadband services.