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

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Definitions:

Asch's Studies

A series of experiments by Solomon Asch on conformity, demonstrating that social pressure can significantly influence a person's judgments and decisions.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, values, or expectations.

High Status

A position of authority or elevated standing in a social, professional, or other hierarchy.

Personal Control

The extent to which an individual feels they can influence or shape the outcomes in their life.