Which of the following factors often affects hostile takeover bids?
A. The takeover premium
B. The composition of the board of the target firm
C. The composition of the ownership of the target's stock
D. The target's bylaws
E. All of the above
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According to the management entrenchment theory,
A. Management resistance to takeover attempts is an attempt to increase the proposed purchase price premium
B. Management resistance to takeover attempts is an attempt to extend their longevity with the target firm
C. Shareholders tend to benefit when management resists takeover attempts
D. Management attempts to maximize shareholder value
E. Describes the primary reason takeover targets resist takeover bids
All of the following are commonly used takeover tactics, except for
A. Poison pills
Bear hug
C. Tender offer
D. Proxy contest
E. Litigation
Vertical mergers are likely to be challenged by antitrust regulators for all of the following reasons except for
An acquisition by a supplier of a customer prevents the supplier's competitors from having access to the customer.
B. The relevant market has few customers and is highly concentrated
C. The relevant market has many suppliers.
D. The acquisition by a customer of a supplier could become a concern if it prevents the customer’s competitors from having access to the supplier.
E. The suppliers' products are critical to a competitor's operations
A collaborative arrangement is a term used by regulators to describe agreements among competitors for all of the following except for
A. Joint ventures
B. Strategic alliances
C. Mergers and acquisitions
D. A & B only
E. A & C only