It Is Generally Argued That the Takeover Constraint Deters Management

question 71

Multiple Choice

It is generally argued that the takeover constraint deters management from

• A) engaging in opportunistic behavior.
• B) considering acquiring other companies.
• C) declaring dividends.
• D) increasing the level of borrowing of a firm.

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Definitions:

Title

Legal ownership of property, especially real estate or automobiles.

Oral Contracts

Agreements that are made verbally and are legally binding, though harder to prove than written contracts.

Written Confirmation

A document that records and verifies specific details of an agreement or transaction between two or more parties.

Merchant

An individual or company engaged in the wholesale purchase and retail sale of goods for profit.