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What is a backflip takeover?
What is a backflip takeover?
- When a smaller company is acquired by a larger company for its resources
- When a bidding company becomes the subsidiary of the taken-over company to benefit from its brand value (correct)
- When a company takes over a well-known brand to eliminate competition
- When a company merges with another company to share resources
Why was AT&T's name continued after being taken over by SBC?
Why was AT&T's name continued after being taken over by SBC?
- AT&T was a well-known, established brand name (correct)
- SBC lacked a recognizable brand name
- AT&T had more resources than SBC
- SBC wanted to eliminate AT&T's brand value
When does a backflip takeover typically take place?
When does a backflip takeover typically take place?
- When the well-known named company is short of resources and the lesser-known company is cash-rich (correct)
- When both companies are equally established in the market
- When both companies are struggling to survive
- When the lesser-known company is short of resources and the well-known named company is cash-rich
In a friendly takeover, when is the company informed about the bidding company's offer?
In a friendly takeover, when is the company informed about the bidding company's offer?
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Why are private company takeovers often friendly?
Why are private company takeovers often friendly?
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What must the management consider before supporting a price to shareholders in a friendly takeover?
What must the management consider before supporting a price to shareholders in a friendly takeover?
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Why does a bidder for a friendly takeover require consent from the management?
Why does a bidder for a friendly takeover require consent from the management?
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