There Are Opportunity Costs to Acquisitions Because Managers in the Acquiring

question 23

Multiple Choice

There are opportunity costs to acquisitions because managers in the acquiring firm

• A) neglect other aspects of the firm's operations.
• B) tend be willing to pay too much for target firms.
• C) are reluctant to take the time to do the necessary due diligence.
• D) are susceptible to cognitive anchoring.

---

Definitions:

P Chart

A type of control chart used for monitoring the proportion of defective items in a sample over time in quality control processes.

Sample Proportion

The fraction or percentage of the sample that has a particular trait or characteristic of interest.

Control Limits

Statistical boundaries in process control that indicate the acceptable range of process variation.

Centerline

The midpoint value in a control chart that represents the average performance of the process being studied.