A hostile takeover is a situation in which
A) the management and board of directors of the targeted firm disapprove of the proposed merger.
B) stockholders are paid a golden parachute.
C) the targeted firm is dismantled to avoid the merger.
D) the government makes the decision that the corporate raider can purchase the targeted firm.
E) the corporate raider receives a sum of money to leave the targeted firm alone.

Question

Quizplus · Accepted Answer

A hostile takeover occurs when a corporate raider tries to acquire a controlling stake in the target firm without the approval of the management and board of directors. This means that the management team and board of directors often oppose such mergers, as they may lose their jobs or influence. Therefore, choice A is the best answer as it reflects the core element of a hostile takeover.

A Hostile Takeover Is a Situation in Which