### What does it mean for a company to be a pawn in a corporate takeover? - [x] It is controlled or manipulated by others during the takeover process. - [ ] It avoids the acquisition entirely. - [ ] It is the leading company in the takeover. - [ ] It initiates the takeover. > **Explanation:** A company being a pawn in a corporate takeover means it is controlled or manipulated by more powerful entities during the takeover process. ### In a hostile takeover, who attempts to acquire the company? - [ ] The company's current employees - [ ] A government agency - [x] An outside entity without the target company's consent - [ ] The company's customers > **Explanation:** In a hostile takeover, an outside entity attempts to acquire a company without the consent of the target company's management and board. ### Which governance mechanism can help prevent a company from becoming a pawn? - [ ] Lack of lower management - [x] Strong internal governance policies - [ ] Transparent inventory processes - [ ] Frequent employee training > **Explanation:** Strong internal governance policies help balance stakeholder interests and prevent a company from being manipulated as a pawn. ### Why might an individual employee be considered a pawn in office politics? - [x] They are used to further someone else's career objectives. - [ ] They refuse any corporate benefits. - [ ] They start new projects frequently. - [ ] They make all office decisions. > **Explanation:** An employee might be considered a pawn in office politics if they are used to further someone else's career objectives, often without their own interests being considered. ### Which factor increases the likelihood of a company being used as a pawn? - [ ] High market cap - [x] Weak internal defenses against takeovers - [ ] Strong alliances only - [ ] Large employee base > **Explanation:** Weak internal defenses against takeovers increase the likelihood of a company being used as a pawn by more powerful entities. ### What can a startup do to avoid being a pawn in strategic alliances? - [ ] Focus solely on its own market. - [ ] Avoid any external partnerships. - [x] Maintain strategic autonomy and diversify relationships. - [ ] Give full control to partners. > **Explanation:** To avoid being a pawn, a startup should maintain strategic autonomy and diversify its business relationships. ### In which type of takeover is a company more likely to become a pawn? - [x] Hostile takeover - [ ] Friendly merger - [ ] Internal reorganization - [ ] Partnership > **Explanation:** In a hostile takeover, a company is more likely to be manipulated and thus, become a pawn in the control battle. ### What is one legal mechanism to protect companies from hostile takeovers? - [ ] Open stock buying - [x] Anti-takeover policies - [ ] Employee stock gifts - [ ] Immediate project expansion > **Explanation:** Anti-takeover policies are legal mechanisms designed to protect companies from hostile takeovers and preserve their autonomy. ### When might being a pawn lead to beneficial outcomes? - [ ] Never, as it is always detrimental. - [x] When managed skillfully in a favorable scenario. - [ ] When ignoring all allies. - [ ] When providing no deliverables. > **Explanation:** Although being a pawn usually has drawbacks, in some cases, it could lead to beneficial outcomes if managed skillfully in a favorable scenario. ### What is a common trait among organizations at risk of becoming pawns? - [ ] High-profit margins - [ ] Large innovation budgets - [x] Lack of strong governance - [ ] Frequent board meetings > **Explanation:** Organizations that lack strong governance mechanisms are at a higher risk of becoming pawns and being manipulated by more powerful entities.