Which of the Following Statements Is CORRECT

question 2

Multiple Choice

Which of the following statements is CORRECT?

• A) Hostile takeovers are most likely to occur when a firm's stock is selling below its intrinsic value as a result of poor management.
• B) The efficiency of the U.S.economy would probably be increased if hostile takeovers were absolutely forbidden.
• C) The managers of established,stable companies sometimes attempt to get their state legislatures to remove rules that make it more difficult for raiders to succeed with hostile takeovers.
• D) In general,it is more in bondholders' interests than stockholders' interests for a firm to shift its investment focus away from safe,stable investments and into risky investments,especially those that primarily involve research and development.
• E) Stockholders in general would be better off if managers never disclosed favorable events and therefore caused the price of the firm's stock to sell at a price below its intrinsic value.

---

Definitions:

Attention-Deficit/Hyperactivity Disorder

A neurodevelopmental disorder characterized by patterns of inattention, hyperactivity, and impulsivity that are pervasive and interfere with functioning or development.

Extremely Active

Describes a state of being highly energetic and engaging in a lot of physical movement or mental activity.

Very Impulsive

Characterized by actions taken without forethought or consideration of the consequences, often resulting in spontaneous decisions based on immediate desires or feelings.

Panic Disorder

A mental health condition characterized by sudden and repeated episodes of intense fear or discomfort along with physical symptoms, such as heart palpitations and shortness of breath.