In the Context of an Institution-Based View,which of the Following

question 47

Multiple Choice

In the context of an institution-based view,which of the following is true of hubristic motives driving acquisitions?

• A) They are a response to formal institutional constraints and transitions.
• B) They involve the display of herd behavior by chasing fads of acquisitions.
• C) They cause a firm to knowingly overpay for targets.
• D) They focus on leveraging superior resources.

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Definitions:

Separate Return Method

A tax filing approach where subsidiaries file their tax returns separately from the parent company, often used in jurisdictions allowing or requiring such filings.

Tax-Free Business Combination

A merger or acquisition in which no tax is payable by either the acquiring or target company.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets.