Which of the following governance mechanisms is regarded as the option of last resort?

Question

Quizplus · Accepted Answer

Takeover constraint is regarded as the option of last resort as it involves the acquisition of a company by another company, which can lead to job losses and other negative consequences. Other governance mechanisms such as strategic control system, Board of Directors, stock-based compensation system, and financial statements and auditors are used to monitor and regulate the company's performance and ensure compliance with laws and regulations.

Which of the Following Governance Mechanisms Is Regarded as the Option