The market for corporate control is often viewed as a "court of last resort" as it is an external governance mechanism that becomes active when a firm's internal controls fail.

Question

Quizplus · Accepted Answer

The statement is true. The market for corporate control is a mechanism that is triggered when internal governance mechanisms fail to ensure proper functioning of the firm. It includes activities such as mergers and acquisitions, hostile takeovers, and proxy contests.

The Market for Corporate Control Is Often Viewed as a "Court