A Takeover Constraint

question 3

Multiple Choice

A takeover constraint

• A) limits the extent to which managers pursue strategies that are inconsistent with shareholder interest.
• B) prevents a company from being taken over.
• C) uses the threat of a takeover to cause the CEO to fear the loss of his or her job.
• D) is reduced by corporate raiders.
• E) is greatest when a company's stock price is significantly higher than book value.

---

Definitions:

Nondirectional Hypothesis

A hypothesis that predicts a relationship between variables but does not specify the direction of that relationship.

Research Hypothesis

A specific, testable prediction about the expected outcome of a study based on theoretical concepts or previous research.

Research Hypothesis

A specific, testable prediction about the expected outcome in a study.

Symbol Represents

An entity that stands for or suggests another entity or concept, typically by convention or association.