Suppose the managers of a company have driven the stock price down because they have spent the investors' money on lavish perquisites like golf club memberships.

Question

Quizplus · Accepted Answer

All the options are accurate and logically follow each other in the given context. If the managers' mismanagement drives the stock price down, a corporate raider can buy up the shares of the company in a hostile takeover. If the takeover is successful, the new management will likely initiate restructuring measures that may result in the loss of jobs for the current managers. If the restructuring is successful, the corporate raider can sell their shares at a profit. Therefore, all the options are connected and could be a possible outcome of the given scenario.

Suppose the Managers of a Company Have Driven the Stock