Briefly Explain Some of the Institutional Arrangements That Ensure That

question 47

Essay

Briefly explain some of the institutional arrangements that ensure that managers work toward increasing the value of a firm.

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Definitions:

Outstanding

Refers to the number of shares that are currently owned by investors, including restricted shares owned by the company's officers and insiders as well as those held by the public.

Successful Takeover

is an event where a company or entity successfully acquires control over another company, usually by purchasing a majority of its stock shares.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, thus having a financial stake in its success.

Acquiring Firm

A company that takes over or purchases another company, typically to expand its business operations or enter new markets.