When a firm pays "greenmail":

a$.$ It is paying for information that reveals its managers' incompetence.

b$.$ It is paying for information that will prove management not guilty of incompetence.

c$.$ It is paying for information about hostile takeovers.

d$.$ It is paying a "white knight."

e$.$ It is paying to buy back its own stock from a "corporate raider."

A "junk bond:"

a$.$ Is any bond with higher than an $"A"$ rating.

b$.$ Is any bond with a "AAA" rating.

c$.$ Is an unrated bond issued on behalf of the corporate raider, back by his or her personal assets.

d$.$ Is an unrated bond issued on behalf of the managers of the takeover budget, back by their personal assets.

e$.$ Is an non investment rated bond issued on behalf of the corporate raider, backed by the assets of the takeover target.

A "corporate raider" who starts taking over a firm by purchasing its stock:

a$.$ Must state his intent to take over with the Securities and Exchange Commission.

b$.$ Must take a "tender offer" to the Securities and Exchange Commission.

c$.$ Will usually go unnoticed because of the vast number of trades made daily on the stock market.

d$.$ Must register his holdings with the Securities and Exchange Commission within $10$ days when they become larger than $5\%.$

e$.$ Will find the price of stocks in his own company increasing.

"Golden parachutes:"

a$.$ Are designed to reward "white knights" for helping the firm.

b$.$ Are designed to protect current stockholders from "greenmail" attempts.

c$.$ Are designed to protect current managers from "greenmail" attempts.

d$.$ Are designed to protect current stockholders from "corporate raiders."

e$.$ Are designed to protect current managers from "corporate raiders."

If stockholders don't approve of managers actions:

a$.$ They have no alternative but to sell their shares.

b$.$ They can try to vote the managers out or they can sell their shares.

c$.$ They can try to vote the managers out since they must hold onto their shares.

d$.$ They can appeal to the "economics of natural selection."

e$.$ They can refuse to pay the managers for services rendered.

A "tender offer:"

a$.$ Is a non$-$hostile takeover offer.

b$.$ Is an offer to purchase stocks just below their prevailing market price.

c$.$ If an offer to purchase stocks at their prevailing market price.

d$.$ Is an offer to purchase stocks above their prevailing market price.

e$.$ Is an offer to take money $($legal "tender"$)$ rather than stocks in a takeover attempt.