Final answer:
If a firm sells or threatens to sell its major assets to deter a takeover, it's using the 'crown jewel' defense. This tactic makes the firm less appealing to potential acquirers by divesting its most valuable parts.
Step-by-step explanation:
When a firm threatened with a takeover attempt sells or threatens to sell major assets, it is employing a strategy commonly referred to as crown jewel. This defensive tactic involves the sale or divestiture of valuable assets or divisions, which are termed 'crown jewels', to reduce the attractiveness of the company to a hostile bidder. By selling these prized assets, the target company hopes to either discourage the potential acquirer or make the takeover less desirable, as the most valuable assets may no longer be part of the deal post-takeover.
Other strategies unrelated to this particular question, such as predatory pricing, trade secrets, and trademark, are various ways firms might create barriers to entry in a market to establish or protect a monopoly position. Predatory pricing involves temporary price cuts to forestall competition, while trade secrets and trademarks help firms maintain a competitive edge through proprietary knowledge and brand protection respectively.