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Why would the threat of a takeover motivate a manager to act in stockholders' interest?

Sagot :

Running the firm well and acting in the stockholders' interest makes the firm a less attractive takeover target, to begin with.

Who are Stockholders?

  • A shareholder of a corporation is an individual or legal entity that is registered by the corporation as the legal owner of shares of the share capital of a public or private corporation.
  • Shareholders may be referred to as members of a corporation.
  • As noted above, a shareholder is an entity that owns one or more shares in a company's stock or mutual fund.
  • Being a shareholder (or a stockholder as they're also often called) comes with certain rights and responsibilities.

Which of the following mechanisms is used to motivate managers to act in the interests of shareholders?

  • The threat of a takeover

To learn more about it, refer

to https://brainly.com/question/24448358

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