In defending against hostile takeover attempts, a company will include provisions in the employment contracts of key executives that provide them with sizable compensation if the firm is taken over. This is called the strategy.
A) golden parachute
B) shark repellent
C) greenmail
D) white knight

Question

Quizplus · Accepted Answer

A golden parachute is a strategy used by a company to offer significant compensation or benefits to key executives if the firm is taken over by another company. The purpose of the golden parachute is to incentivize these executives to stay with the company and work towards preventing a hostile takeover attempt. The other answer choices are different strategies used by companies to defend against hostile takeovers, but they do not involve compensation for key executives.

In Defending Against Hostile Takeover Attempts, a Company Will Include