Enchilada Inc. seeks to purchase a substantial number of the voting shares of Fajita Company. Enchilada deals directly with the shareholders of Fajita. Enchilada offers a price higher than the market price of Fajita's shares. This is

A) a poison pill.
B) a tender offer.
C) a self-tender.
D) a breach of the business judgment rule.

Tender Offer

A public offer made by a person, company, or entity to purchase a substantial portion of another company's shares or bonds.

Voting Shares

Stocks that grant the holder the right to vote on corporate matters at shareholders' meetings.

Poison Pill

a defense strategy used by companies to prevent or discourage unwanted takeover attempts by making the company less attractive to the acquirer.