Question

One reason corporations use staggered boards is that Blank______.

Multiple choice question.

it makes takeover attempts less likely to be successful


it attracts potential acquirers


it makes it easier for minority shareholders to elect a director to represent them


all board members are elected at the same time, so the election process works more smoothly

Answer 1

One reason corporations use staggered boards is that **it makes takeover attempts less likely to be successful**.

Staggered boards often reduce the likelihood of hostile takeovers by making it more difficult for an acquirer to gain control of the board quickly.