What Are Poison Pills

Multiple Choice

What are poison pills?

A) Shareholders use them to prevent the founder of a company from taking the company private through a leveraged buyout.
B) They are unspecified conditions in the contract between stakeholders in an organization.
C) Companies use them in a bid to perform a hostile takeover of competing firms.
D) They are defensive provisions that kick in should a buyer reach a certain level of share ownership.