An acquiring firm may attempt to limit the options of the target's senior management by making a formal
acquisition proposal, usually involving a public announcement, to the board of the directors of the target.

Question

Quizplus · Accepted Answer

This is true. By making a formal acquisition proposal to the target's board of directors, the acquiring firm can attempt to limit the options of the target's senior management and gain control of the company.

An Acquiring Firm May Attempt to Limit the Options of the Target's