When a Takeover Bid Is Initiated, the Board of Directors

question 19

Multiple Choice

When a takeover bid is initiated, the board of directors of the target firm has the legal obligation to its shareholders to

• A) recommend acceptance or rejection, or remain neutral, with written reasons.
• B) defend against the bid.
• C) remain neutral on the merits of the bid.
• D) remain silent on the merits of the bid.
• E) resign.

---

Definitions:

Reaching Agreement

The process of finding a mutually acceptable solution or understanding between two or more parties.

Victim Collapse

Refers to a situation where an individual suddenly becomes incapacitated due to an external or psychological shock, often in emergencies or traumatic incidents.

First Aid Training

A program that teaches individuals how to provide immediate care to a person who is injured or suddenly becomes ill until professional medical help arrives.

Do Nothing

A decision or strategy to not take action or intervene in a situation.