If a publicly-traded MNC's managers make poor decisions that reduce its value, it may encourage other firms to acquire it.

Question

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If the managers of a publicly-traded MNC make poor decisions that reduce its value, other firms may see an opportunity to acquire it at a lower price and attempt a takeover of the company. This is a common occurrence in the corporate world, especially when a company's stock price has been declining for an extended period of time. The potential for a takeover can put pressure on a company's management to make changes that will increase its value and improve its market position.

If a Publicly-Traded MNC's Managers Make Poor Decisions That Reduce