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:

Inversely

In a manner that is directly opposite or contrary in position, direction, order, or effect.

Stressed People

Individuals experiencing a state of mental or emotional strain resulting from adverse or demanding circumstances.

Buffer

A person or thing that reduces the impact of a shock or disturbance, or in computing, a temporary memory storage that holds data.

Cancer

A group of diseases characterized by the presence of new cells that grow and spread beyond control.