Corporate shareholders are best protected from incompetent management decisions by
A) the ability to engage in proxy fights.
B) management's control of pecuniary rewards.
C) the ability to call shareholder meetings.
D) the threat of takeover by other firms.
E) one-share/one-vote election rules.

Question

Quizplus · Accepted Answer

The threat of takeover by other firms serves as a strong deterrent against incompetent management, as poor performance can make a company an attractive target for acquisition, potentially leading to management being replaced.

Corporate Shareholders Are Best Protected from Incompetent Management Decisions by