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Which of the Following Reasons Might a Free Market Economic

Question 8

Multiple Choice

Which of the following reasons might a free market economic theorist use to justify the hostile takeover of a company?


A) The takeover target company's stock is undervalued. That is evidence that the resources are being inefficiently used.
B) The organization seeking to take over the target company will maximize profits for the stockholders and will be serving the public's interests because it is only by satisfying consumer (public) demand that a business can make profits.
C) If the takeover target's managers are using their stockholders' money to serve interests other than those of the stockholders, they are stealing from them.
D) All of the above.

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