Question content area\ Part 1\ How does the threat of a hostile takeover encourage firms to maximize profits?\ Part 2\ The threat of a hostile takeover encourages firms to maximize profits because\ Part 3\ A.\ owners are less likely to vertically integrate if the firm is unprofitable.\ B.\ managers are likely to grant themselves lavish perks if the firm is unprofitable.\ C.\ managers are more likely to expand the firm at a rapid pace when it is unprofitable.\ D.\ outside investors are more likely to use poison pills if the firm is unprofitable.\ E.\ shareholders are more likely to vote for takeovers if the firm is unprofitable.