Takeover Bids (And the Potential for Such Bids)

question 74

Multiple Choice

Takeover bids (and the potential for such bids)

• A) increase the incentive of corporate managers to perform efficiently.
• B) increase the likelihood that managers will be able to gain at the expense of stockholders.
• C) are more likely to occur when a company is producing efficiently and operating profitably.
• D) serve no useful economic purpose.