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Which of these might a friendly potential buyer be called?
  • a)
    Wicked Witch
  • b)
    White Knight
  • c)
    Majority Stockholder
  • d)
    Silent Partner
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which of these might a friendly potential buyer be called?a)Wicked Wit...
Answer:

A friendly potential buyer is often referred to as a "White Knight". This term is commonly used in the context of mergers and acquisitions to describe a party that comes to the rescue of a target company facing a hostile takeover attempt by another party, commonly known as the "Black Knight" or the "Raider". The White Knight is viewed as a friendly alternative to the hostile bidder, as they typically offer a more favorable deal to the target company's shareholders.

Explanation:

1. Wicked Witch:
The term "Wicked Witch" is not applicable to a friendly potential buyer. It is a phrase commonly associated with villains or antagonistic characters, particularly in fairy tales or fantasy stories. In the context of a potential buyer, it would be inappropriate and offensive to refer to them as a wicked witch.

2. Majority Stockholder:
While a majority stockholder may have significant influence over a company's decisions, they are not necessarily a potential buyer. A majority stockholder is an individual or entity that owns more than 50% of a company's outstanding shares, giving them a controlling interest. They may have the power to influence decisions, but they may not necessarily be interested in buying the company or acting as a friendly potential buyer.

3. Silent Partner:
A silent partner is an individual or entity that invests capital into a business but does not take an active role in its management or operations. They typically do not participate in day-to-day decision-making and are not involved in the company's strategic direction. While a silent partner may provide financial support, they are not typically considered a potential buyer.

Therefore, the correct answer is option 'B' - White Knight. The term "White Knight" is commonly used to describe a friendly potential buyer who comes to the rescue of a target company facing a hostile takeover attempt. They offer a more favorable deal to the target company's shareholders and are seen as a preferable alternative to the hostile bidder.
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Which of these might a friendly potential buyer be called?a)Wicked Witchb)White Knightc)Majority Stockholderd)Silent PartnerCorrect answer is option 'B'. Can you explain this answer?
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