Theoretically, takeovers should result in
A)improved management.
B)increased stock price.
C)increased benefits to existing management of the taken-over firm.
D)improved management and increased stock price.

Question

Quizplus · Accepted Answer

Takeovers should result in improved management as the new owners may bring in fresh ideas and expertise. Increased stock price is also a common outcome as the new management may implement changes that increase profitability and shareholder value. The other options, increased benefits to existing management and no changes to management, may not always be the case and depend on the specific details of the takeover.

Theoretically, Takeovers Should Result in