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Firm B Has the Option to Purchase the Key Assets

Question 4

Multiple Choice

Firm B has the option to purchase the key assets of Firm A at a predetermined fixed price should Firm A become the target in an unfriendly takeover attempt.Which term applies to the option given to Firm B?


A) Countertender offer
B) Fair price provision
C) Dual class capitalization
D) Bear hug
E) Lockup

Correct Answer:

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