Are poison-pill defenses ethical? If a potential acquirer buys company stock legally, thereby becoming a part owner of the company, should management be allowed to entrench itself against the wishes of this owner? Explain your answer.

Q: Why do businesses decide to acquire other businesses? How do they decide to divest parts of their…

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Q: What do you think is the main issue of conflict between the stockholders and managers?

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Q: Why do most acquisitions fail to create shareholder value?

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Q: What are some of the risks an investor would face when investing in a stock? In addition to the…

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Q: Which of the following is an incentive for firms to conduct an IPO? Underwriter and advisor fees…

A: IPO is a process in which the company raises funds by selling its shares to the public for the first…

Q: Explain the statement ‘the purpose of a derivative action is to ensure that minority shareholders…

A: Introduction:  A derivative action allows a minority shareholder to bring legal action on behalf of…

Q: types of companies enter the markets for initial public offerings? Why do companies choose to go…

A: Any company satisfying the asset requirements and trade requirements of security exchange commission…

Q: What are some actions an entrenched management might take that would harm shareholders?

A: Entrenched management basically means that the senior management has grown so powerful that they can…

Q: Ethical Considerations. Are poison-pill defenses ethical? If a potential acquirer buys company stock…

A: While taking business decisions, business ethics play an important role. Business ethics means right…

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Q: Which of the following objectives of the company creates immoral practices such as: corrupt…

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Q: have the right to vote on a sale of the firm under any circumstances? Explain.

A: A voting right is the ability of a corporation's shareholders to vote on corporate policy issues…

Q: What is the possible agency conflict between inside owner/managers and outside shareholders? What…

A: What is the possible agency conflict between inside owner/managers and outside shareholders?…

Q: true or false  One challenge corporate entrepreneurs face is they are likely to face hostile…

A: A hostile attack refers to a deliberate and aggressive act carried out with the intention of causing…

Q: One of the essential elements of control is power. According to PFRS 10, an investor has power if

A: PFRS: control requires exposure or right to variable returns and the ability to affect those returns…

Q: If you're worried about infinite liability, what alternative forms of ownership arrangements for…

A: The Answer

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A: Just like other jobs, management jobs are also at risk in the event of takeovers. So, the answer…

Q: or

A: A hostile takeover is a sort of business purchase or merger that is carried out against the…

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Q: What are some defensive tactics that firms can use to resist hostile takeovers?

A: A hostile takeover comes around when one company, the obtaining company, tries to require over…

Q: Discuss circumstances in which a Management Buy - Out (MBO) might be an appropriate form of…

A: Management Buy-Out (MBO) involves the pooling of resources by the management team in order to…

Q: When you are purchasing a company stock, you are purchasing part of the company.

A: Companies issue stocks or shares for raising money from those investors who want to invest their…

Q: An objection to managing a firm on behalf of stakeholders rather than shareholders is that​ _

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Q: Some advantages of obtaining control by acquiring a controlling interest in stock incl but: d The…

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Q: Acquisitions (or the threat thereof) can help to foster better corporate governance.   Question…

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Q: What options does a company have if its board or management is opposed to an acquisition, a merger,…

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Q: What business risks does Toll Brothers face that may threaten the company’s ability tosatisfy…

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Q: From an investor perspective ESOPs are the most valuable if used to help prevent takeovers but are…

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Q: A director’s duty to avoid a conflict of interest includes: Select one: a. Not making a personal…

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Q: Which of the following is NOT normally regarded as being a barrier to hostile takeovers? (…

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Corporate Ethics

Ethics refers to the moral values and principles that guide an individual. Corporate ethics refers to the moral behavior of a company and its employees while conducting business. Business ethics is another name for corporate ethics. Business ethics reflects the purpose of doing the business. Business ethics is the distinction between what is right and wrong in the workplace and the selection of the right set of actions. Every corporate entity follows business ethics to a large extent in order to survive and compete successfully in the market. Corporate entities that strictly adhere to business ethics gain the trust of their stakeholders and thus gain more customers. An organization follows compliance, i.e., following certain business policies, rules, procedures, and practices to deal with the problem arising from the business environment. Business ethics also ensures that they meet compliance requirements as it was connected with the activities of an organization.