The market for corporate control is composed of individuals and firms that buy ownership positions or take over potentially undervalued corporations and make changes to those corporations, including the replacement of the top managers.

Question

Quizplus · Accepted Answer

This statement accurately describes the market for corporate control. Individuals and firms may acquire ownership positions through stock purchases or takeovers and then work to make changes to the corporation, potentially including replacing the current managers. This market is a key driver of competition and performance in the corporate world.

The Market for Corporate Control Is Composed of Individuals and Firms