Poorly performing companies are also more likely to be taken over by another firm.After the takeover, the old management team may find itself out on the street.

Question

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This statement is true, as poorly performing companies are often targeted by other firms for takeover opportunities in order to turn them around and improve their performance. In these cases, the old management team may be replaced with a new team that is better suited to improving the company's performance.

Poorly Performing Companies Are Also More Likely to Be Taken