Which of the following statements with regard to corporate governance is incorrect?

Market for corporate control often refers to a takeover market where overvalued firms become attractive takeover targets by potential acquirers.

A hostile takeover allows a bidder to take over a target company whose management is unwilling to agree to a merger or takeover.

Market for corporate control, also known as external corporate governance, usually comes into play when a firm$$s internal governance fails.

The threat of takeover can serve as a governance mechanism by aligning the interests and goals between executives and shareholders and thus put additional pressure on managers to perform more efficiently.