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

Question

Quizplus · Accepted Answer

Takeover is regarded as the option of last resort as it involves the acquisition of a company through a hostile or friendly bid, typically when other governance mechanisms have failed to improve the company's performance or address its problems. Other options such as strategic control system, board of directors, stock-based compensation system, and financial statements and auditors are typically considered as primary or secondary governance mechanisms.

Which of the Following Governance Mechanisms Is Regarded as the Option