The Rising Ratio of Divestitures to New Acquisitions Which Has

question 13

Multiple Choice

The rising ratio of divestitures to new acquisitions which has occurred in the later part of this century suggests that

• A) poison pills are no longer effective as a defence against takeovers.
• B) too much diversification strained the operating capabilities of many firms.
• C) the portfolio effect has been a highly successful method of reducing risk.
• D) multinational firms are increasingly considered highly risky investments.

---

Definitions:

Other-Race Effect

The tendency to recall faces of one’s own race more accurately than faces of other races. Also called the cross-race effect and the own-race bias.

Explicit and Implicit Attitudes

Explicit attitudes are conscious beliefs that can guide decisions and behavior, while implicit attitudes are unconscious beliefs that can influence actions and perceptions.

Stereotypes

Widely held but fixed and oversimplified images or ideas about a particular type of person or thing.

Discrimination

Unfair or prejudicial treatment of individuals based on characteristics such as race, gender, age, or sexual orientation.