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38. Borrowing funds on terms that would require immediate repayment of all loans if the firm is acquired, selling off at bargain prices the assets

38. Borrowing funds on terms that would require immediate repayment of all loans if the firm is acquired,

selling off at bargain prices the assets that originally made the firm a desirable target, and granting huge

"golden parachutes" that open if the firm is acquired are 3 procedures used to defend against hostile

takeovers. These strategies are known as "poison pills."

a. True

b. False

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