If a firm has had an agency conflict which is reflected by a poor performing stock for a long period of time, then the firm may become a target of _____
A) an SEC investigation.
B) a corporate raider.
C) an IRS investigation.
D) a bankruptcy lawyer.

Question

Quizplus · Accepted Answer

A corporate raider may target a company that has a poor performing stock due to agency conflicts, as they see potential to make changes to improve the company's performance and increase the value of their investment. SEC and IRS investigations or bankruptcy lawyers may also become involved, but they are not directly related to the poor stock performance resulting from agency conflicts.

If a Firm Has Had an Agency Conflict Which Is