If the board of directors of a target seeks an alternative,"friendly," acquirer,then it is said to be using which takeover defense?

Question

Quizplus · Accepted Answer

A "white knight" takeover defense refers to a situation where a target company seeks out a friendly alternative acquirer to prevent a hostile takeover. This option differs from other defenses such as "just say no" or "standstill" because it actively seeks out a more favorable suitor. Therefore, the correct answer is D, white knight.

If the Board of Directors of a Target Seeks an Alternative,"friendly