Which of the following statements is CORRECT?
A) One disadvantage of organizing a business as a corporation rather than a partnership is that the equity investors in a corporation are exposed to unlimited liability.
B) Using restrictive covenants in debt agreements is an effective way to reduce conflicts between stockholders and managers.
C) Managers generally welcome hostile takeovers since the "raider" generally offers a price for the stock that is higher than the price before the takeover action started.
D) The managers of established, stable companies sometimes attempt to get their state legislatures to impose rules that make it more difficult for raiders to succeed with hostile takeovers.
E) The managers of established, stable companies sometimes attempt to get their state legislatures to remove rules that make it more difficult for raiders to succeed with hostile takeovers.

Question

Quizplus · Accepted Answer

The managers of established, stable companies sometimes attempt to get their state legislatures to impose rules that make it more difficult for raiders to succeed with hostile takeovers. This is because hostile takeovers can threaten their job security and may not align with their long-term goals for the company.

Which of the Following Statements Is CORRECT