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

Question

Quizplus · Accepted Answer

A hostile takeover refers to the acquisition of a company against the wishes of its management or board of directors. It typically involves the purchase of a controlling stake in the company's outstanding shares, which gives the acquirer the power to remove and replace the existing board of directors and management. The other options (A, B, and D) do not involve the acquisition of a controlling stake or the ability to replace the board and management.

A ________ Is When a Rich Individual or Organisation Purchases