If a company has had an agency problem that is reflected in a poor performing share for a long period of time, then the company may become a target of _________________.
A) an ASIC investigation.
B) a corporate raider.
C) a tax department investigation.
D) an insolvency lawyer.

Question

Quizplus · Accepted Answer

A corporate raider may see an opportunity in a poorly performing company with an agency problem and attempt to acquire a controlling interest in the company to make changes and improve its performance. The other options are not relevant in this scenario.

If a Company Has Had an Agency Problem That Is