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Identify the Three Potential Sources of Strategic Relatedness Between Bidding

question 9

Essay

Identify the three potential sources of strategic relatedness between bidding and target firms that were detailed by Lubatkin in 1983 and the four general reasons why bidding firms might want to engage in merger and acquisitions as detailed by Jensen and Ruback in 1983.


Definitions:

Acquiring Information

The process of obtaining knowledge or data from various sources, through reading, observation, or research.

Spreading Activation

A theory in cognitive psychology that suggests ideas in the brain are connected in a network, and thinking about one concept triggers the recall of associated concepts.

Nodes

In network theory, points at which lines or pathways intersect or branch, which can refer to elements in a network or connections in a neural network.

Abstraction

The process of extracting the underlying essence or general patterns from specific instances or material representations, often used in the fields of art, mathematics, and philosophy.

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