When a hostile takeover appears to be inevitable,a target company will sometimes look for another,friendlier company to acquire it called a:
A)poison pill.
B)classified board.
C)golden parachute.
D)white knight.
E)recapitalization.

Question

Quizplus · Accepted Answer

A "white knight" is a friendly company that acquires a target company to prevent it from being taken over by a hostile bidder. The white knight usually offers a better deal than the hostile bidder, or has a more desirable merger plan, making it a preferred choice for the target company.

When a Hostile Takeover Appears to Be Inevitable,a Target Company