Suppose the Managers of a Company Have Driven the Stock

question 97

Multiple Choice

Suppose the managers of a company have driven the stock price down because they have spent the investors' money on lavish perquisites like golf club memberships.

• A)This situation may prompt a corporate raider to buy up the shares of the firm in a hostile takeover.
• B)If the hostile takeover is successful, the managers will probably lose their jobs in the ensuing restructuring.
• C)If the restructuring is successful, the corporate raider can sell his shares at a profit.
• D)All of the above

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Definitions:

Labor Unions

Organizations that represent the collective interests of workers in negotiations with employers over wages, work conditions, and rights.