In markets-oriented systems an under-performing "entrenched" management is often replaced by
A) SEC regulators.
B) a hostile takeover.
C) stockholders electing a new board of directors to fire the managers.
D) the bank that owns the firm firing them.

Question

Quizplus · Accepted Answer

In market-oriented systems, a hostile takeover is a common mechanism for replacing under-performing management, as new owners can restructure the company and replace management to improve performance.

In Markets-Oriented Systems an Under-Performing "Entrenched" Management Is Often Replaced