What are some defensive tactics that firms can use to resist hostile takeovers?

Q: What does it mean to “manage” risk? Should itsstockholders want a firm to “manage” all of therisks…

A: Company is not certain about few things which cannot be predicted exactly. In that case, there will…

Q: How does bank chartering reduce adverse selectionproblems? Does it always work?

A: A financial institute that takes deposit from and provides loan to the customers is termed as the…

Q: A sudden change in power can result in a regime that is hostile to foreign investment that is a…

A: Barrier to foreign investment relates to hurdles that may arise for investors while making a cross…

Q: How does a lockbox system operates and why a firm might consider implementing such a system?

A: A lockbox system is critical for cash handling. It assists in the collecting of cash from various…

Q: Which of the following risk responses would be most likely to be given consideration for an…

A: Importing and exporting are both forms of foreign trade. The total imports, exports, and balance of…

Q: Which of the following correctly characterizes the risks in merger arbitrage? O A. The strategy is…

A: Merger arbitrage is the process where an investor trades in the stock of the companies involved in…

Q: Many firms have devised defenses that make it more difficult or costly for other firms to take them…

A: Agency problems is a situation when one party acts like an agent for another party (principal) and…

Q: It is quite often we observe some firms takeover target firms from a different industry. If…

A: Diversified acquisition means those acquisitions in which the company acquires the other company to…

Q: incentives of business profits create unwarranted influence in times of war

A: Business have the objective of making more profits but at the time of war like situations this…

Q: Explain the mechanism of using financial leverage as a takeover defense tool

A: Leverage is an investment strategy of using borrowed money specifically, the use of various…

Q: How to avoid rogue trading? What are the consequences of rougue trading?

A: A rogue trader is a trader who acts recklessly and without regard for others, usually to the…

Q: Develop a good contingency plan to each of the following situations: 1. If a major competitor…

A: Answering the first 3 sub-questions as per Bartleby Guidelines: 1. If a major competitor withdraws…

Q: Why don’t all firms go private to capture these benefits?

A: The firm’s go private based on the following benefits,

Q: How are the characteristics of an organized security exchange differ from an over the counter…

A: Financial markets contain any marketplace where securities such as the stock market, bond market,…

Q: What should a MNC do to prevent bribery?

A: Bribery is the act of giving or receiving something of value in exchange for some kind of influence…

Q: What are the factors that determine whether the company should use cash acquisition or stock…

A: Cash Acquisition refers to the acquisition or proposal by one company to another company to buy…

Q: Are managers of firms with formidable takeover defenses more or less likely to act in the…

A: Just like other jobs, management jobs are also at risk in the event of takeovers. So, the answer…

Q: Briefly describe some of the anti-takeover measure used.

A: Companies are either reducing the competition or adjusting with them. This can be done with the help…

Q: Explain how pure risk has an adverse effect on the economy

A: Pure risk is one of the major type of risk which is beyond the control and can affects the economy…

Q: Discuss five different defensive tactics that the target company can use to thwart this takeover…

A: The shielding techniques a business enterprise employs to thwart a antagonistic takeover will have a…

Q: What creates rogue traders?

A: A rogue trader is a trader who acts recklessly and without regard for others, usually to the…

Q: To minimize exposure to political risk, a multinational firm may establish a joint venture with a…

A: A political risk arises out of the instability of a foreign government and its policies. To assess…

Q: What major benefits do corporations and investors enjoy because of the existence of organized…

A: Security exchanges serve as secondary markets where sale and purchase of securities is made on a…

Q: Discuss the validity of risk diversification as a motivation for companies engaging in merger and…

A: Introduction : In simple words, when two companies join their operations to work together it is…

Q: How can patents, copyrights, and legal challenges be used to manage business risk?

A: A company can adopt a risk management strategy to mitigate business risk.

Q: Why the limitation of portfilio analysis is it naively following the prescriptions of a portfolio…

A: In general, small businesses will offer only one product or service. But as the expansion of…

Q: Which of the following statements is false?

A: Management should consider the needs of the bondholder because if they don't, they could end up…

Q: It is generally argued that the takeover constraint  deters management from engaging in…

A: The term takeover refers to the process of one company acquiring control in another company, and the…

Q: Does competition from small start-ups really pose a big competitive threat to Oracle? Explain why or…

A: Competitive threat is defined as the competition in the market, which have not occurred though has…

Q: Why is sanctions compliance important?

A: Financial institutions are the institutions or organizations which act as the intermediaries of the…

Q: Why use a business risk approach?

A: Business risk is generally identified by the Auditor. By reviewing the financial statements Auditor…

Q: It is generally argued that the takeover constraint : Deters management from engaging in…

A: Takeover Constraint:-It is a risk of being taken over by another company, hence the company's…

Q: Examples of systematic risk include a new competitor in the marketplace with the potential to take…

A: Unsystematic Risk: Diversifiable Risk is another name for this type of risk, which is easier to…

Q: Describe some takeover defenses.

A: Introduction: Defensive tactics: Frequently the managers of target firm oppose the attempts of…

Q: Wall Street firms have traditionally compensated their traders with a share of the trading profits…

A: Meanwhile dealers’ advantage from proceeds but don't get penalized for losses, they were stimulated…

Q: what happens if a company doesn't manage risk ?

A: Risk management is important part of carrying the business activities. There are different types of…

Q: Explain to a group of business students why a security is considered to be liquid and state its…

A: The securities include cash, bonds, mutual funds, and stocks of a company.

Q: What are options in strategy

A: Definition: "Options are financial derivatives that give buyers the right, but not the obligation,…