Borrowing funds on terms that would require immediate repayment of all funds if the firm is acquired, selling off valuable assets, and granting huge "golden parachutes" that open if the firm is acquired are
3 procedures used to defend against hostile takeovers. These strategies are known as "poison pills."

Question

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These strategies are known as "poison pills" because they make the target company less attractive to potential acquirers.

Borrowing Funds on Terms That Would Require Immediate Repayment of All