The Takeover Market as a Source of External Discipline Is

question 54

True/False

The takeover market as a source of external discipline is used only when internal governance mechanisms are relatively weak and have proven to be ineffective.

---

Definitions:

Call Option Contract

An agreement in finance that grants the individual holding it the freedom, but not the duty, to buy various assets like stocks, bonds, or commodities at a fixed price before the deadline expires.

Buyer

An individual or entity that purchases goods or services from another party.

Seller

An individual or entity that is offering a product or service for sale.

Forward Contract

A customizable financial contract between two parties to buy or sell an asset at a specified future time at a price agreed upon at the moment of the contract’s initiation.