- CFA Exams
- 2021 CFA Level I Exam
- Study Session 10. Corporate Finance (1)
- Reading 31. Introduction to Corporate Governance and Other ESG Considerations
- Subject 6. Factors Affecting Stakeholder Relationships and Corporate Governance
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.
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