________ franchising involves providing the franchisee with a complete business system, with an established name, the building layout and design, accounting systems, and other elements while ________ franchising allows the franchisee to use the
franchisor's trade name without distributing the products exclusively under the franchisor's name.
A) Product distribution; trade name
B) Trade name; pure
C) Pure; trade name
D) Pure; product distribution
C
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For most stocks, the returns from dividend income far exceeds the return from capital gains
Indicate whether the statement is true or false.
Which of the following statements regarding poison pills is FALSE?
A) Companies with poison pills are harder to take over, and when they are taken over, the premium that existing shareholders receive for their stock is higher. B) Because a poison pill increases the cost of a takeover, all else equal, a target company must be in better shape to justify the expense of waging a takeover battle. C) Poison pills also increase the bargaining power of the target firm when negotiating with the acquirer because poison pills make it difficult to complete the takeover without the cooperation of the target board. D) By adopting a poison pill, a company effectively entrenches its management by making it much more difficult for shareholders to replace bad managers, thereby potentially destroying value.