The "corporate takeover market" plays a part in handling the conflict between management and __________ in __________-oriented financial systems.
A) bankers; markets
B) bankers; banking
C) stockholders; markets
D) stockholders; banking

Question

Quizplus · Accepted Answer

In market-oriented financial systems, such as the United States, the conflict between management and stockholders is resolved through the corporate takeover market. Stockholders who are dissatisfied with management can sell their shares to a potential acquirer, who can then gain control of the company and potentially replace the management team. Therefore, the corporate takeover market plays a significant role in addressing this conflict between management and stockholders in a market-oriented financial system.

The "Corporate Takeover Market" Plays a Part in Handling the Conflict