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What Are Poison Pills

Question 64

Multiple Choice

What are poison pills?


A) They are used by shareholders to prevent the founder of a company from taking the company private through a leveraged buyout.
B) They are unspecified conditions in the contract between stakeholders in an organization.
C) They are used by companies in a bid to perform a hostile takeover of competing firms.
D) They are defensive provisions that kick in should a buyer reach a certain level of share ownership.

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