Managerial opportunism
A) is a by-product of a cost leadership strategy
B) is limited by takeover constraint
C) is only a factor in global firms.
D) is encouraged by takeover constraint.

Question

Quizplus · Accepted Answer

Managerial opportunism can be limited by the takeover constraint because the threat of a takeover can discipline managers to act in the shareholders' best interests, reducing the opportunity for them to act opportunistically.

Managerial Opportunism