A hostile takeover is an acquisition of a company against the wishes of its management and board of directors.     Question 19AnswerTrueFalse

Answer: True

A hostile takeover indeed refers to an acquisition of a company that occurs without the consent of its management and board of directors. This situation typically arises when a potential acquirer tries to bypass the existing management by directly appealing to the shareholders to gain control or by using tactics such as a tender offer, where the acquirer offers to purchase shares directly at a premium price. Hostile takeovers can create significant tension and conflict within a company, as the existing leadership will likely resist efforts to remove or change management positions. These acquisitions may lead to major strategic changes and can often be contentious, showing the complexities involved in corporate governance and ownership dynamics.