Which of the Following Statements Is True About Takeover Constraint

question 43

Multiple Choice

Which of the following statements is true about takeover constraint?

• A)It encourages managers to put their own interests above those of stockholders.
• B)It usually occurs when the management has maximized the wealth of the stockholders.
• C)It often gives senior managers more independence when it comes to granting stock options.
• D)It has ceased to exist in companies since the late 1990s.
• E)It is the governance mechanism of last resort invoked only when the others have failed.

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The act of inhaling and exhaling the smoke of burning tobacco encased in cigarettes, known to cause health issues including respiratory disorders and cancer.