How Does the Hubris Hypothesis Affect a Company That Is

question 80

Multiple Choice

How does the hubris hypothesis affect a company that is considering an acquisition?

• A) The host country places additional tariff barriers on companies who want to acquire another business.
• B) Home country managers are less likely to understand the culture associated with the acquired business.
• C) Top managers typically overestimate their ability to create value from the acquisition.
• D) The additional transportation costs devalue the potential for profit.
• E) The acquired company must surrender its technological know-how.

---

Definitions:

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brainstem down the back, and is encased in the vertebral column, transmitting nerve signals between the brain and the rest of the body.

Brain

The organ located in the head of an animal that coordinates its behavior, processes sensory information, and is the center of perception, memory, thought, and emotion.

Hominids

Members of the taxonomic family Hominidae, which includes modern humans, their ancestors, and other great apes.

Walking Upright

Refers to the ability of humans and their ancestors to move by standing on two feet and using the legs for locomotion, distinguishing them from quadrupedal animals.