A ________ is when a rich individual or organization purchases a large fraction of the stock of a poorly performing firm and in doing so gets enough votes to replace the board of directors and the CEO.

Question

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A hostile takeover is a situation in which a wealthy individual or organization buys a significant portion of the stock of a poorly performing company with the goal of gaining enough voting power to replace the board of directors and the CEO. This is usually done against the wishes of the current management and can be a disruptive process.

A ________ Is When a Rich Individual or Organization Purchases