According to the management entrenchment hypothesis, takeover defenses are designed to protect the
target firm's management from a hostile takeover.

Question

Quizplus · Accepted Answer

The management entrenchment hypothesis suggests that takeover defenses are implemented by the target firm's management to protect their positions and power from the potential threat of a hostile takeover by outside shareholders or other entities.

According to the Management Entrenchment Hypothesis, Takeover Defenses Are Designed