When Evaluating an Acquisition You Should

question 176

Multiple Choice

When evaluating an acquisition you should:

• A) Concentrate on book values and ignore market values.
• B) Focus on the total cash flows of the merged firm.
• C) Apply the rate of return that is relevant to the incremental cash flows.
• D) Ignore any one-time acquisition fees or transaction costs.
• E) Ignore any potential changes in management.

Acknowledge the social and psychological processes involved in intergroup conflict.

Explain the principles of social identity theory and their relevance to intergroup relations.

Understand the effects of minimal group paradigms on group behavior and attitudes.

Evaluate strategies for reducing intergroup conflict and promoting positive intergroup relations.

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Definitions:

Corporate Cults

Organizations that cultivate intense employee loyalty and devotion, sometimes to the point of excluding outside influences and fostering an insular culture.

Subcultures

Distinct cultural groups within a larger culture, each with its own values, practices, and beliefs that differentiate them from the broader culture.

Adaptive Cultures

Corporate cultures that are flexible and responsive to changes in the external environment, facilitating innovation and change within the organization.

Stable Value System

Refers to an established and consistent set of beliefs and ethical standards that guide an individual or organization's behavior.