Attempt to gain control of a firm by winning votes of its shareholders is best defined as:
A)Leveraged Buyout.
B)Poison Pill.
C)Shark Repellent.
D)Proxy Contest.

Question

Quizplus · Accepted Answer

Proxy contest involves the attempt to gain control of a firm by winning the votes of its shareholders, usually through soliciting proxy votes to elect new management or change certain policies. A leveraged buyout entails using borrowed funds to acquire a controlling interest in a target company, while a poison pill and shark repellent are defensive strategies used by companies to deter hostile takeovers.

Attempt to Gain Control of a Firm by Winning Votes