One of the reasons why proxy fights are rarely successful is that:
A) management is always viewed as performing its job well.
B) management can use corporate resources to defend against the fight.
C) mergers are a cheaper form of changing management.
D)shareholders are unconcerned with corporate management.

Question

Quizplus · Accepted Answer

Management has access to corporate resources such as legal teams, financial analysts, and advertising budgets that they can use to defend themselves against proxy fights. This can make it difficult for shareholders to win the support of enough investors to achieve their objectives. However, if they are successful, the outcome can result in changes in the company's management, strategy, or governance.

One of the Reasons Why Proxy Fights Are Rarely Successful