Series 79 practice questioneasyHostile vs Friendly Transactions
What most clearly distinguishes a hostile takeover from a friendly acquisition?
- AThe buyer uses only cash consideration
- BThe target is private
- CThe deal closes in under 30 days
- DTarget management opposes the transaction✓ Correct answer
Explanation
Why D — Target management opposes the transaction
Target management opposes the transaction A hostile bid proceeds without board support and typically goes directly to shareholders or seeks board replacement. Friendly deals, by contrast, are negotiated with management and the board.
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