Which of the following statements is true of a hostile takeover??
A. ?A hostile takeover results when a management wants the firm to be taken over.
B. ?A hostile takeover occurs when a firm's stock is undervalued relative to its potential.
C. ?A hostile takeover retains the managers of the acquired firm at their previous positions.
D. ?A hostile takeover refrains managers to take actions that maximize stock prices.
E. ?A hostile takeover results in poor management and inefficient operations.
Answer: B
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