A Change in the Corporate Charter Making It More Difficult

question 77

Multiple Choice

A change in the corporate charter making it more difficult for the firm to be acquired by increasing the percentage of shareholders that must approve a merger offer is called a:

• A)supermajority amendment.
• B)standstill agreement.
• C)greenmail provision.
• D)poison pill amendment.
• E)white knight provision.

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Definitions:

Legal Reserves

Funds that banks are legally required to hold in reserve against deposits made by their customers, either as cash in the bank or as deposits in the central bank.

Federal Reserve

The main bank system in the United States, tasked with managing the country's monetary policy, overseeing banking regulations, ensuring the financial system remains stable, and delivering financial services.

Liabilities

Financial obligations or debts owed by a person, company, or entity to others.

Assets

Resources with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.