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.

Comprehend the process and importance of issuing RFQs and RFPs in procurement.

Learn the various aspects and considerations in outsourcing project work.

Understand the importance of qualification and performance history of suppliers for project success.

Grasp the significance of payment schedules and clauses in vendor and supplier contracts.

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Definitions:

Desirable Behaviour

Actions or conduct that are considered advantageous, beneficial, or appropriate according to societal, organizational, or personal standards.

Law of Contingent Reinforcement

This law states that the effectiveness of a reward or punishment in influencing future behavior is contingent upon the behavior being directly linked to the reward or punishment.

Desired Behaviour

The specific actions or reactions that are sought after in a particular context, often influenced by goals or expectations.

Enhancement Value

The additional value created through measures that improve the quality, performance, or perception of a product, service, or experience.