According to the management entrenchment theory, Group of answer choices A.Management resistance to takeover attempts is...

According to the management entrenchment theory,

Group of answer choices

A.Management resistance to takeover attempts is an attempt to increase the proposed purchase price premium

B.Management resistance to takeover attempts is an attempt to extend their longevity with the target firm

C.Shareholders tend to benefit when management resists takeover attempts

D.Management attempts to maximize shareholder value

E.Describes the primary reason takeover targets resist takeover bids

Solutions

Expert Solution

According to the Management entrenchment theory,management will be resistant to the takeover attempt because they will want to increase their longevity with the target form because they will want to secure their job and they will want to to resist to any takeover attempt because they want the job security and they will be wanting that the target firm should survive so that their job is intact.

rest of the options are not true as it is not reflecting maximization of shareholders value or interest of other persons rather than management.

Correct answer will be option (B)

jeff jeffy answered 1 year ago

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