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:

Neuronal Functioning

Refers to the activities and processes that allow neurons, or nerve cells, to communicate with each other and perform complex tasks like processing and transmitting information.

Fechner's Law

A principle describing the logarithmic relationship between the intensity of a stimulus and the sensation it produces, highlighting a stronger sensation increase from lower to moderate intensities compared to higher ones.

Strength Of Sensation

The intensity with which a sensory input is felt or experienced by an individual.

Psychological Intensity

The degree of strength or force of psychological phenomena, such as emotions, motivations, or experiences.