Isidore Crocker, CEO of Gotham Engines, Is Strongly in Favor

question 48

Multiple Choice

Isidore Crocker, CEO of Gotham Engines, is strongly in favor of acquiring Carolina Textiles, a firm in an unrelated industry.Some members of the board of directors are questioning Crocker's motives for the acquisition.They argue that it is not uncommon for CEOs to push for acquisitions because:

• A) a successful acquisition will increase the CEO's power over the board of directors.
• B) making an acquisition is an easier route to increased firm value than is improving the firm's core competencies.
• C) higher CEO pay is related to larger organization size.
• D) CEOs nearing retirement seek to create empires to continue their legacy.

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Definitions:

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A holistic approach to health care originating in China, utilizing practices such as herbal medicine, acupuncture, and exercise regimes.

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A traditional system of medicine from India that seeks to treat and integrate body, mind, and spirit using a comprehensive holistic approach including diet, exercise, and lifestyle changes.

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