Multiple Choice
RedMart Corp. operates a chain of supermarkets. The managers and other employees of the company have been on strike for months due to their differences with its owners. As a result, the share price of the company has fallen drastically. Pro Investments Inc. purchases a majority of the shares of RedMart, confident that it can manage the company better. The problem faced by RedMart Corp. as result of the separation of ownership and control can be termed as a(n) _________.
A) hostile takeover
B) proxy fight
C) agency problem
D) accountability problem
Correct Answer:
Verified
Correct Answer:
Verified
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