By Satisfying Which of the Following Conditions Can Shareholders Prevent

question 17

Multiple Choice

By satisfying which of the following conditions can shareholders prevent management driven acquisitions?

• A)If shareholders could determine which acquisitions will lead to increased profits and which will not
• B)If shareholders could direct management to undertake only those acquisitions that will increase shareholder value
• C)If shareholders could provide management with the appropriate steps to conduct when performing acquisitions
• D)a & b
• E)None of the above

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, with high elasticity indicating sensitivity to price changes.

Supplier

An entity that provides goods or services, typically in exchange for payment.

Revenue

The total income generated by a firm from its business activities, typically from the sale of goods and services to customers.

Midpoint Method

A technique used in economics to calculate the elasticity of demand or supply by using the average of the initial and final quantities and prices.