The following are methods available to change the management of a firm:
I.a successful proxy contest in which a group of shareholders vote in a new board of directors who then pick a new management team;
II.a takeover of one firm by another firm;
III.a leveraged buyout of the firm by a private group of investors
A)I only
B)II and III only
C)I, II, and III
D)I and III only

Question

Quizplus · Accepted Answer

All three methods (I, II, and III) are ways to change the management of a firm. A successful proxy contest can result in a new board of directors who can appoint new management. A takeover by another firm often leads to a change in management to align with the acquiring company's strategy. A leveraged buyout by a private group can also lead to management changes as the new owners implement their vision for the company.

The Following Are Methods Available to Change the Management of a Firm