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Which of the following best describes the “Poison Pill Strategy” ?
  • a)
    Strategy used by a country to indirectly affect another country by destructing its economy.
  • b)
    Strategy used by a private company to take over a public company through privatisation.
  • c)
    Strategy used by a country to indirectly take control of another country by using its own people to topple the government.
  • d)
    Strategy used by the directors of a public company to prevent investors from taking control of the company by buying up large amounts of its stock.
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Which of the following best describes the “Poison Pill Strategy&...
"Poison pill" is a colloquial term for a defense strategy used by the directors of a public company to prevent activist investors, competitors, or other would-be acquirers from taking control of the company by buying up large amounts of its stock. Poison pills were formally called "shareholder rights plans." A poison pill is a defense tactic that listed companies use to deter activist investors or acquirers from building large stakes or staging a takeover without the board's consent and without paying a premium to all shareholders. Poison pills specify the maximum stake a shareholder may amass and dilute the holdings of all shareholders in an attempt to discourage acquirers from gaining a controlling interest. Because poison pills can entrench company managers and boards, companies must be able to show they are a proportional response to a credible threat. Investors unable to convince a company to drop its poison pill retain the option of persuading shareholders to replace the board. So, Option (d) is correct. 85) Consider the following statements about Plastiglomerate : 1. It is a rock composed of sand, fragments, and shells discovered on a beach on Aves Island in the Lakshadweep Islands. 2. The unique feature of this rock is a green cover encloses it and is devoid of any plastic traces. Which of the statements given above is/are correct ? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
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Which of the following best describes the “Poison Pill Strategy” ?a)Strategy used by a country to indirectly affect another country by destructing its economy.b)Strategy used by a private company to take over a public company through privatisation.c)Strategy used by a country to indirectly take control of another country by using its own people to topple the government.d)Strategy used by the directors of a public company to prevent investors from taking control of the company by buying up large amounts of its stock.Correct answer is option 'D'. Can you explain this answer?
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Which of the following best describes the “Poison Pill Strategy” ?a)Strategy used by a country to indirectly affect another country by destructing its economy.b)Strategy used by a private company to take over a public company through privatisation.c)Strategy used by a country to indirectly take control of another country by using its own people to topple the government.d)Strategy used by the directors of a public company to prevent investors from taking control of the company by buying up large amounts of its stock.Correct answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following best describes the “Poison Pill Strategy” ?a)Strategy used by a country to indirectly affect another country by destructing its economy.b)Strategy used by a private company to take over a public company through privatisation.c)Strategy used by a country to indirectly take control of another country by using its own people to topple the government.d)Strategy used by the directors of a public company to prevent investors from taking control of the company by buying up large amounts of its stock.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following best describes the “Poison Pill Strategy” ?a)Strategy used by a country to indirectly affect another country by destructing its economy.b)Strategy used by a private company to take over a public company through privatisation.c)Strategy used by a country to indirectly take control of another country by using its own people to topple the government.d)Strategy used by the directors of a public company to prevent investors from taking control of the company by buying up large amounts of its stock.Correct answer is option 'D'. Can you explain this answer?.
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