Which of the Following Statements Regarding Efficiency Gains Is FALSE

question 9

Multiple Choice

Which of the following statements regarding efficiency gains is FALSE?

• A)Takeovers relying on the improvement of target management are difficult to complete,and post-takeover resistance to change can be great.Thus,not all inefficiently run organizations are necessarily more efficient following a takeover.
• B)Although identifying poorly performing corporations is relatively easy,fixing them is another matter entirely.
• C)A justification that acquirers cite for paying a premium for a target is efficiency gains,which are often achieved through an elimination of duplication.
• D)A chief executive of an inefficiently run corporation can be ousted by current shareholders voting to replace the board of directors,and in fact a large number of ineffective managers are replaced in this way.

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Definitions:

Frequency

The number of occurrences of a repeating event per unit of time, often measured in Hertz (Hz).

Pure Tones

Sounds that have a sinusoidal waveform and contain only one frequency, often used in hearing tests and research.

Nature

Refers to the phenomena of the physical world collectively, including plants, animals, the landscape, and other features and products of the earth, as opposed to humans or human creations.

Motion Parallax

A depth cue that involves the apparent relative motion of stationary objects as observed by an observer moving across the landscape.