An attempt to gain control of a target firm by buying sufficient shares of it in the marketplace is known as a ________ and is typically accomplished through a ________.
A) friendly takeover; leveraged buyout
B) leveraged buyout; consolidation
C) friendly takeover; consolidation
D) hostile takeover; tender offer

Question

Quizplus · Accepted Answer

The attempt to gain control of a target firm by buying sufficient shares of it in the marketplace is known as a takeover. If it's not a friendly acquisition, but rather one that is contested by the target firm's management, it's known as a hostile takeover. Tender offer is a type of hostile takeover where the acquiring company directly offers to buy the shares of the target firm's shareholders at a premium price. Therefore, the correct answer is D.

An Attempt to Gain Control of a Target Firm by Buying