If a firm has had an agency conflict which is reflected in 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 poor performing stock may make a firm vulnerable to a takeover by a corporate raider who sees an opportunity to acquire the firm at a lower price and potentially turn it around for a profit. An SEC investigation and IRS investigation are regulatory actions that may be taken against a firm for specific violations or issues, while a bankruptcy lawyer would be involved if the firm was facing insolvency or bankruptcy.

If a Firm Has Had an Agency Conflict Which Is