Explain the purpose of antitakeover tactics and provide a specific example of an actual antitakeover tactic.
What will be an ideal response?
Feedback: Unfriendly or hostile takeovers can occur when the company stock becomes undervalued. A competing organization can buy the outstanding stock of a takeover candidate in sufficient quantity to become a large shareholder. Then it makes a tender offer to gain full control of the company. If the shareholders accept the offer, the hostile firm buys the target company and either fires the target firm management team or strips the team members of their power. Thus, antitakeover tactics are common, including greenmail, golden parachutes, and poison pills.
You might also like to view...
Which of the following statements about blue ocean thinking is true?
A) It involves designing creative business ventures to positively affect both a company's cost structure and its value proposition to consumers. B) In blue ocean thinking, industry boundaries are defined and accepted, and the competitive rules of the game are known. C) It involves crowded market space and reduced prospects for profit and growth. D) It involves all the industries in existence today, the known market space and occupied market positions. E) In blue ocean thinking, value to consumers comes from reintroducing factors the industry has previously offered.
Information obtained prior to the issuance of the current period's financial statements of a company indicates that it is probable that, at the date of the financial statements, a liability will be incurred for obligations related to product warranties on products sold during the current period. During the past three years, product warranty costs have been approximately 1 1/2 percent of annual
sales revenue. An estimated loss contingency should be a. neither accrued nor disclosed in the financial statements. b. recognized as an appropriation of retained earnings. c. accrued in the accounts and reported in the financial statements. d. disclosed in the financial statements but not accrued.
What is the major difference between the Unadjusted Trial Balance and the Adjusted Trial Balance?
A) The Adjusted Trial Balance will show the net income (loss) as an additional account. B) Both will need to be in balance in order to continue with the end-of-period processing C) The Adjusted Trial Balance includes the postings of the adjustments for the period in the balance of the accounts. D) The Unadjusted Trial Balance will be used to record the adjustments for the period.
Billboards, signs in sports arenas, skywriting, and ads on the sides of buildings are all forms of ________ advertising.
Fill in the blank(s) with the appropriate word(s).