The Primary Purpose of a Flip-Over Provision Is To

Multiple Choice

The primary purpose of a flip-over provision is to:

A) Increase the number of shares outstanding while also increasing the value per share.
B) Dilute a corporate raider's ownership position thereby increasing the cost of a takeover.
C) Reduce the market value of each share of stock.
D) Give the existing corporate directors the sole right to remove a poison pill.
E) Provide additional compensation to any senior managers who lose their jobs as a result of a corporate takeover.