If the acquirer wants the target firm's managers to stay in place,at least for a stated period of time,the acquirer should employ the tactic known as a
A)golden parachute.
B)crown jewel.
C)golden handcuff.
D)captured knight.
E)white knight.

Question

Quizplus · Accepted Answer

A golden handcuff is a strategy used by an acquiring company to retain the target firm's key managers for a stated period by offering them financial incentives to stay with the company. This strategy can be particularly useful when there is a concern about losing key talent or institutional knowledge after the acquisition. A golden parachute is a lucrative severance package for top executives in the event of a change in control of the company, while a crown jewel refers to a company's most valuable and prized assets that it may sell to fend off an unsolicited acquisition. Captured knight and white knight are both terms used to describe acquiring firms during a takeover battle, and are not relevant to this question.

If the Acquirer Wants the Target Firm's Managers to Stay