In a Competitive Marketplace, If Managers Deviate Too Far from Making

question 41

True/False

In a competitive marketplace, if managers deviate too far from making decisions that are consistent with shareholder wealth maximisation, they risk being disciplined by the market.Part of this discipline involves the threat of being taken over by groups who are more aligned with shareholder interests.

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Definitions:

Mutual Acquaintances

Individuals known by two or more parties, often serving as a social or professional link between them.

Debt

Money that is owed or due to be paid to someone else.

Breach Of Contract

Failure to live up to the terms of a contract.

Condition

A stipulation in a contract that must be met for the contract to be legally binding, or an event whose occurrence or non-occurrence affects the validity of the contract.