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:

Tariff

A tax imposed by a government on goods and services imported from other countries to regulate trade and protect domestic industries.

Sugar

A sweet-tasting, soluble carbohydrate found in many plants, widely used as a sweetener in food and beverages.

Import Quota

A restriction by a country on the quantity of a good that can be imported over a given period.

Consumer Surplus

The difference in the amount consumers are prepared to pay versus what they actually pay for goods or services.