All of the following statements are true about the use of defense tactics by the target firm during a hostile takeover EXCEPT defense tactics:
A) are usually beneficial for the executives of the target firm.
B) are opposed by institutional investors.
C) vary in their effectiveness as a defense to takeovers.
D) make the costs of a takeover lower.

Question

Quizplus · Accepted Answer

Defense tactics generally make the costs of a takeover higher, not lower, as they are designed to deter or complicate the takeover process.

All of the Following Statements Are True About the Use