Question

The top management of RavenCrest, Inc. has significant stock options in RavenCrest. They are therefore more likely to gain in making an agreement to be acquired, especially if they have golden parachutes.

a) true
b) false

Answer 1

TRUE

Step-by-step explanation:

A golden parachutes is a contract signed between the employees and employers in which an executive is given a lucrative severance benefits when there's a merger or acquisition. In this case, it is very beneficial for the top management if Raven Crest is acquired seeing they have both a golden parachutes contract signed in and also posses significant stock options. Should the control of the RavenCrest change hands through an acquisition, the top management will be handed lucrative severance benefits.