A Rights Offering That Gives Existing Target Shareholders the Right

question 22

Multiple Choice

A rights offering that gives existing target shareholders the right to buy shares in either the target or an acquirer at a deeply discounted price once certain conditions are met is called a ________.

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

---

Definitions:

Sanitary Condition

The state of being clean and free from infection or disease, typically applied to living environments or food production.

Abandonment

The act of relinquishing property, rights, or responsibilities without the intention of reclaiming them at a later date.

Leased Premises

Property rented under a lease agreement, where the lessee has the right to occupy and use the property for a specified term.

Rent Default

The failure to pay rent as stipulated in a lease agreement, potentially leading to eviction or legal action.