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:

Cultural Assimilation Model

A theory suggesting that individuals from minority groups gradually adopt the culture of the dominant group, losing their original cultural identity over time.

Multicultural Model

A framework or approach that recognizes, respects, and incorporates diverse cultural perspectives, experiences, and contributions in various contexts.

Reference Banks

Collections of information, resources, or data that are used for consultation or research purposes.

Peer Opinions

The attitudes, beliefs, and judgments of one's age or status group, often influencing individual behaviors and choices.