The Takeover Constraint

The takeover constraint

A) effectively limits the number of independent companies that a company can acquire.
B) limits the degree to which managers can pursue strategies that are at variance with stockholder interests.
C) is a theoretical construct that can be ignored in practice.
D) limits the freedom that individual companies have to maximize their long-run return on investment.
E) is imposed by corporate managers on errant business-level managers.

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