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To Mitigate Deadweight Costs Associated with the Shareholder-Management Principal-Agent Conflict

Question 2

Multiple Choice

To mitigate deadweight costs associated with the shareholder-management principal-agent conflict, some investors become major shareholders and attempt to influence management to act in the best interest of shareholders.This is an example of:


A) a takeover.
B) shareholder activism.
C) packing the board.
D) principal intervention.

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