What can bondholders do to limit management’s ability to bait and switch?
| ♥ 0 |
What can bondholders do to limit management’s ability to bait and switch? |
Answer and Explanation
Explanation
For limiting management's interest to bait and switch, bondholders can change the existing plan of investing borrowed funds by stating the same in the bond contract.
In the bond contra...
Explanation
For limiting management's interest to bait and switch, bondholders can change the existing plan of investing borrowed funds by stating the same in the bond contract.
In the bond contract it should be clearly stated which limits the management's ability to invest in risky projects.
Verified Answer
Bondholders can change existing plans of investing borrowed funds.
Purchase this answer to view it.
Login or register for free to purchase this solution with PayPal or credit cards securely
