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

According to Michael Porter, there is a tremendous allure to _________. It is the big play, the dramatic gesture. With one stroke of the pen you can add billions to size, get a front-page story, and create excitement in markets.

According to Michael Porter, there is a tremendous allure to _________. It is the big play, the dramatic gesture. With one stroke of the pen you can add billions to size, get a front-page story, and create excitement in markets. 

A. strategic alliances and joint ventures

B. internal development

C. mergers and acquisitions

D. differentiation strategies

Answer: C

Internal development may be time consuming and, therefore, firms may forfeit the benefits of speed that growth through __________ and __________ can provide.

Internal development may be time consuming and, therefore, firms may forfeit the benefits of speed that growth through __________ and __________ can provide. 

A. strategic alliances; joint ventures

B. strategic alliances; mergers

C. mergers; acquisitions

D. mergers; strategic alliances

Answer: C