A firm seeking a friendly acquirer to avoid a hostile takeover is in need of a:
A)Bootstrap.
B)White knight.
C)Poison pill.
D)Greenmail attempt.

Question

Quizplus · Accepted Answer

A firm seeking a friendly acquirer to avoid a hostile takeover is in need of a "white knight." A white knight is a friendly and more desirable option for the target company than a hostile takeover, as it allows the firm to retain some control over the acquisition process. A bootstrap is a self-funding method of starting a business, a poison pill is a defense mechanism used by companies to make their stocks unattractive to potential acquirers, and greenmail attempt is a tactic used by a target company to buy back its own shares at a premium to avoid a hostile takeover.

A Firm Seeking a Friendly Acquirer to Avoid a Hostile