- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 3. Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
- Subject 2. Corporate Governance Mechanisms
CFA Practice Question
A company's management can defend against unwanted hostile takeovers by using several strategies, such as a ______.
II. tender offer
III. staggered board
IV. golden parachute
I. poison pill
II. tender offer
III. staggered board
IV. golden parachute
Correct Answer: I, III and IV
A tender offer is often used by an acquirer to purchase the shares of a company at a premium above the current market value.
User Contributed Comments 1
| User | Comment |
|---|---|
| khalifa92 | golden parachute ain't mentioned in the CFA book do we need to go out of our way to read about it and do so in every LOS? I think what we have is enough. |