Which one of the following statements is TRUE?
A. Shareholders benefit when the company is acquired because they usually receive a higher price for their shares
B. Anti-takeover charter provisions are good for shareholders because they prevent a raider from stealing the company for a below-market price.
C. Shareholders want to prevent takeovers because they don't want the company purchased out from under them.
D. A shareholder rights provision encourages takeovers because shareholders have the right to approve the takeover if the terms are good.
E. A classified board is one in which the board members serve anonymously.
Answer: A
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