In defending against hostile takeover attempts, a company will approve anti-takeover amendments to the corporate charter that constrain the firm's ability to transfer managerial control of the firm as a result of a merger. This is called the ________ strategy.
A) golden parachute
B) greenmail
C) poison pill
D) shark repellent

Question

Quizplus · Accepted Answer

The correct term for anti-takeover amendments to a corporate charter that make it difficult to transfer managerial control after a merger is "shark repellent." These amendments are designed to protect a company from hostile takeovers by making it less attractive or more difficult for a potential acquirer.

In Defending Against Hostile Takeover Attempts, a Company Will Approve