What Is One of the Actions That Can NOT Help

question 40

Multiple Choice

What is one of the actions that can NOT help managers defend against a hostile takeover?

• A) establishing a poison pill provision
• B) granting lucrative golden parachutes to senior managers
• C) establishing a super-majority provision in the company's bylaws to raise the percentage of the board of directors that must approve an acquisition from 50% to 75%
• D) changing the voting procedures for the board election from noncumulative to cumulative one

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Definitions:

Operating Activities

Transactions and events that affect net income, related to the primary operations of the business.

Contingent Activities

Contingent activities are actions or events that may occur but their happening is dependent upon certain conditions or situations being met.

Financing Activities

Financing activities are transactions involving obtaining or repaying capital, including issuing equity, borrowing loans, and paying dividends.

Investing Activities

Financial transactions that relate to the acquisition or sale of assets, investments, and other long-term items that are not part of the company's primary operations.