What force does Manne indicate constrains the actions of managers so that they stay focused on the goals of owners?
A)Market for corporate control
B)SEC
C)Corporate board
D)Corporate governance
E)CEO

Question

Quizplus · Accepted Answer

Manne refers to the market for corporate control as the force that constrains the actions of managers, as it allows for the possibility of the company being acquired by another party if the managers are not acting in the best interest of the owners/shareholders. The other options, such as the SEC, corporate board, corporate governance, and CEO, may play a role in shaping the actions of managers, but they are not the primary force that Manne discusses.

What Force Does Manne Indicate Constrains the Actions of Managers