Which of the Following Statements Is True of a Hostile

Multiple Choice

Which of the following statements is true of a hostile takeover?

A) A hostile takeover results when management wants the firm to be taken over.
B) A hostile takeover is most likely to occur when a firm's stock is undervalued relative to its potential.
C) After a hostile takeover, managers of the acquired firm generally retain the positions they had prior to the takeover.
D) A hostile takeover does not allow managers to take actions that maximize stock prices.
E) A hostile takeover results in poor management and inefficient operations after the takeover is completed.