The shareholders of W Markets would benefit if the firm were to be acquired by Better Foods. However, W Markets' board of directors rejects the acquisition offer. This is an example of:

The shareholders of W Markets would benefit if the firm were to be acquired by Better Foods. However, W Markets' board of directors rejects the acquisition offer. This is an example of:



A. a corporate takeover

B. a capital structure issue

C. a working capital decision

D. an agency conflict

E. a compensation issue



Answer: D. an agency conflict


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