A poison pill will raise the potential for maximizing shareholder value because it deters takeover bids.

Question

Quizplus · Accepted Answer

This statement is false. While a poison pill may deter takeover bids, it can also limit the control of the company by shareholders and potential acquirers, ultimately decreasing shareholder value. Therefore, the use of a poison pill is a controversial strategy, and its effectiveness in maximizing shareholder value is debatable.

A Poison Pill Will Raise the Potential for Maximizing Shareholder