s resent such actions because they are unable to anticipate and respond to such downgrading, although their portfolios suffer as a whole.
2. The central weakness of the public corporation is the conflict between owners and managers over the control and use of company resources. This weakness is overcome through the removal of current management and the replacement of those managers with individuals who are sympathetic and loyal to the new owners after a takeover occurs. Indeed, often the new managers are given a large equity interest in the organization in order to reinforce the parallel interests between themselves and the large institutions and entrepreneurs who actually own the organization.
The new organization that has appeared as a result of takeovers is one that focuses its attention on short-term profitability and considers the use of company assets. In some cases, assets and even entire divisions are sold to other interests after takeovers in order to realize profit from the sales and improve the financial lot of the new owners. In ot
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