Gamma Corp

Multiple Choice

Gamma Corp.has recently bought stocks in an under performing company that has failed to maximize stockholder wealth.Gamma Corp.has made changes to the top management structure of the company and has persuaded the management to pursue strategies that maximize the wealth of stockholders.Gamma Corp.has been able to earn millions by doing so.Which of the following concepts is illustrated in this scenario?

A) Greenmail
B) Agency theory
C) Information asymmetry
D) Self-dealing
E) On-the-job consumption