1. Which of the following statements is true of a hostile takeover?
a. A hostile takeover results when a management wants the firm to be taken over.
b. A hostile takeover occurs when a firm's stock is undervalued relative to its potential.
c. A hostile takeover retains the managers of the acquired firm at their previous positions.
d. A hostile takeover refrains managers to take actions that maximize stock prices.
e. A hostile takeover results in poor management and inefficient operations.
2. The process by which commercial banks transform funds provided by savers into funds used by borrowers is called _____.
a. investment banking
b. shelf registration
c. diversification
d. underwriting
e. financial intermediation