A hostile takeover is said to occur when another corporation or group of investors gains voting control over a firm and replaces the old managers.If the old managers were managing the firm inefficiently,then hostile takeovers can improve the economy.However,hostile takeovers are controversial,and legislative actions have been taken to make them more difficult to undertake.

Question

Quizplus · Accepted Answer

This statement accurately describes what a hostile takeover is, and acknowledges that they can have positive or negative effects on the economy. It also notes that there have been efforts to make hostile takeovers more difficult to carry out, implying that they are indeed controversial.

A Hostile Takeover Is Said to Occur When Another Corporation