An Extremely Lucrative Severance Package That Is Guaranteed to a Firm's

question 11

Multiple Choice

An extremely lucrative severance package that is guaranteed to a firm's senior managers in the event that the firm is taken over and the managers are let go is called a:

• A)golden parachute.
• B)white knight.
• C)poison pill.
• D)classified board.

---

Definitions:

Collection Float

The time period between when a payment is made by a customer and when the funds become available in the company’s account.

Cheques

Paper instruments that instruct a bank to pay a specific amount of money from the check writer's account to the person or entity in whose name the cheque has been issued.

Deposit

A sum of money placed into an account or given to a party as security for the performance of an agreement.

Daily Interest Rate

The interest rate expressed as a daily figure, often used in calculating interest on loans or savings on a day-to-day basis.