If the acquirer wants the target firm's managers to stay in place,at least for a stated period of time,the acquirer should employ the tactic known as a
A)golden parachute.
B)crown jewel.
C)golden handcuff.
D)captured knight.
E)white knight.

Question

Quizplus · Accepted Answer

The tactic of employing golden handcuffs is used when an acquirer intends to retain the target firm's managers for a stated period, typically to ensure a smooth transition of business operations. Golden handcuffs usually take the form of bonuses, stock options or deferred compensation, which can only be accessed after a certain period has passed or specific targets are achieved. The purpose of such tactics is to align the interests of the target firm's managers with those of the acquirer and to ensure their commitment to the company's long-term goals post-acquisition.

If the Acquirer Wants the Target Firm's Managers to Stay