A __________ is an agreement in a proposed takeover that allows the board of directors to negotiate with other bidders or to terminate a merger agreement.
A) termination clause
B) fiduciary out
C) revolving door
D) no talk provision

Question

Quizplus · Accepted Answer

A fiduciary out is an agreement in a proposed takeover that allows the board of directors to negotiate with other bidders or to terminate a merger agreement. This clause provides protection to the board , allowing it to act in the best interest of the shareholders. A termination clause is a general term used to describe a contractual provision that allows a party to terminate an agreement in certain circumstances, which may or may not include a proposed takeover. A revolving door refers to the practice of individuals moving back and forth between government positions and private sector jobs, particularly in industries that are regulated. A no talk provision, also known as a non-disclosure agreement or confidentiality agreement, restricts the parties involved in a proposed transaction from discussing or disclosing information about the deal to others.

A __________ Is an Agreement in a Proposed Takeover That