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If the market for corporate control were efficient as a governance device, then only __________ would be targets for takeovers. a. firms with unethical top executives b. poorly performing firms c. overvalued firms d. firms earning above-average returns

User Farooq
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Answer: Option B

Step-by-step explanation: In simple words, corporate governance refers to the set of rules and guidelines which are used for operating and managing an organisation. These rules are implemented so that all the actions of the organisation will be ethical and lawful so that no potential threats like lawsuit etc will occur in the future.

Thus, if the corporate control is as efficient as a governance device than any breach of rule will be easily detected ans strict actions would be taken against it. And chances of doing a breach is high for an organisation in which the top executives are unethical.

Hence the correct option is B .

User Fgv
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