Which of the following is incorrect: A. The Market for Corporate Control is an important external mechanism for encouraging corporate managers to act in their shareholders’ best interests B. GMU Dean Emeritus Henry G. Manne developed the theoretical concept of "Market for Corporate Control" C. The Market for Corporate Control was enacted into law by the Williams Act D. The Market for Corporate Control protects rationally ignorant shareholders E. None of the above

Which of the following is incorrect: A. The Market for Corporate Control is an important external mechanism for encouraging corporate managers to act in their shareholders’ best interests B. GMU Dean Emeritus Henry G. Manne developed the theoretical concept of "Market for Corporate Control" C. The Market for Corporate Control was enacted into law by the Williams Act D. The Market for Corporate Control protects rationally ignorant shareholders E. None of the above

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 6CQQ

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A management team that is inefficiently utilising the companys scarce resources may find itself at risk of losing their jobs due to which of the following market mechanisms? A. Corporate regulators B. The market for corporate control C. Management shareholdings D. Management remuneration incentive packages E. Fishers separation theorem
Most corporations exist only under the proper licenses and charter and operate within the limits of safety laws, environmental protection requirements, and other laws and regulations in the government sector. Well-meaning companies sometimes run afoul of stakeholders anyway but can take actions to appease them. Fina, Inc. established an oil refinery in Port Arthur, Texas. Over the years, subdivisions of attractive ranch-style homes grew up in the shadow of the Fina plant. Home owners became unhappy with the plant in their midst because of its noise and odor. How does Fina have to act in a socially responsible way by helping stakeholders?
Name and explain in detail two mechanisms through which the market for corporate control operates.
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Which of the following statement is incorrect? a. An agency relationship is developed when the principal hires another party (agent) to perform some services on his behalf. b. Shareholders and managers do have an agency relationship c. Sustainable finance encourages firms to adopt UNSDGS d. When there is a conflict between the shareholders and the managers, it is called an agency problem e. Shareholders are the real managers of a business
True or False: A liability is something you owe to another person or to a business. True False

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	A.	The Market for Corporate Control is an important external mechanism for encouraging corporate managers to act in their shareholders’ best interests
	B.	GMU Dean Emeritus Henry G. Manne developed the theoretical concept of "Market for Corporate Control"
	C.	The Market for Corporate Control was enacted into law by the Williams Act
	D.	The Market for Corporate Control protects rationally ignorant shareholders
	E.	None of the above