- 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
An attempt to acquire a company without the consent of the company's management is a(n) ______.
B. tender offer
C. hostile takeover
A. anonymous acquisition
B. tender offer
C. hostile takeover
Correct Answer: C
A hostile takeover is the acquisition of one company by another that is accomplished by going directly to the company's shareholders or fighting to replace management to get the acquisition approved. A hostile takeover can be accomplished through either a tender offer or a proxy fight.
User Contributed Comments 0
You need to log in first to add your comment.