Antitakeover tactics include all of the following EXCEPT _________.

Antitakeover tactics include all of the following EXCEPT _________. 

A. greenmail

B. poison pills

C. golden parachutes

D. golden handcuffs

Answer: D

The term golden parachute refers to _________.

The term golden parachute refers to _________. 

A. a clause requiring that huge dividend payments be made upon takeover

B. pay given to executives fired because of a takeover

C. financial inducements offered by a threatened firm to stop a hostile suitor from acquiring it

D. managers of a firm in a hostile takeover approaching a third party about making the acquisition

Answer: B

An antitakeover tactic in which existing shareholders have the option to buy additional shares of stock at a discount to the current market price is called ______.

An antitakeover tactic in which existing shareholders have the option to buy additional shares of stock at a discount to the current market price is called ______. 

A. greenmail

B. a golden parachute

C. a poison pill

D. scorched earth

Answer: C

The antitakeover tactic, _______, is when a firm offers to buy shares of their stock from a company (or individual) planning to acquire their firm at a higher price than the unfriendly company paid for it.

The antitakeover tactic, _______, is when a firm offers to buy shares of their stock from a company (or individual) planning to acquire their firm at a higher price than the unfriendly company paid for it. 

A. golden parachute

B. poison pill

C. greenmail

D. scorched earth

Answer: C