A ________ Is When a Rich Individual or Organization Purchases

question 21

Multiple Choice

A ________ is when a rich individual or organization purchases a large fraction of the stock of a poorly performing firm and in doing so gets enough votes to replace the board of directors and the CEO.

• A)shareholder proposal
• B)leveraged buyout
• C)shareholder action
• D)hostile takeover

---

Definitions:

Venture Capitalists

Investors who provide funding to startups or small businesses with long-term growth potential in exchange for equity, or partial ownership of the company.

Enterprise Zones

Specific geographic areas designated for economic revitalization.

Economic Revitalization

The process of boosting the economic growth and development of an area or community, often through government initiatives or private investments.

Economic Stimulus

Governmental measures intended to encourage economic growth or counter economic downturns, often through fiscal policies like tax cuts or spending programs.