Since managers' central goal is to maximize stock price, managerial control issues do not interfere with mergers that would benefit the target firm's stockholders.

Question

Quizplus · Accepted Answer

While maximizing stock price is often a priority for managers, there may be other factors that they consider when evaluating a merger, such as the impact on employee morale, organizational culture, and customer relationships. Additionally, conflicts of interest can arise if managers stand to gain personally from a merger, which can interfere with their decision-making process.

Since Managers' Central Goal Is to Maximize Stock Price, Managerial