Use the following statements to answer this question:
A) I is correct and II is correct.
B) I is incorrect and II is incorrect.
C) I is correct and II is incorrect.
D) I is incorrect and II is correct.
I.Managers may abuse their position and increase the size of the company through acquisitions.
II.It is usually good news for shareholders when their firm is targeted.

Question

Quizplus · Accepted Answer

Managers may pursue acquisitions to increase company size for personal gain, which can be detrimental to shareholder value. When a firm is targeted for acquisition, it often results in a premium paid on the stock, benefiting shareholders.

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