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.

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Definitions:

Indirect Strategy

A communication approach where key messages are delivered in a roundabout or less direct manner.

Manipulative

Actions or strategies designed to influence or control others' behaviors or perceptions in a subtle or deceptive way.

Communicating Negative News

The process of delivering unfavorable or disappointing information in a sensitive and effective manner.

Maintaining Friendly Relations

The practice of fostering positive and harmonious interactions between individuals or groups.