Theoretically,takeovers should result in ___________.
A)improved management
B)increased stock price
C)increased benefits to existing management of taken over firm
D)A and B
E)A,B,and C

Question

Quizplus · Accepted Answer

Theoretically, takeovers should result in improved management as the acquiring company may have better management practices, increased efficiency, and better financial resources. This, in turn, should result in increased stock price, as investors may perceive the newly merged company to have a better outlook. However, it is not necessary that the existing management of the taken over firm gets increased benefits, as it largely depends on the terms of the acquisition. Therefore, options A and B are correct while C is not always applicable.

Theoretically,takeovers Should Result in ___________