Which of the Following Is an Example of Rationalization

question 51

Multiple Choice

Which of the following is an example of rationalization?

• A) A ?rm diversi?es into unrelated markets, increasing its level of risk.
• B) A ?rm merges with another ?rm and reduces costs by combining managerial functions.
• C) One ?rm acquires another smaller ?rm although the managers at the smaller ?rm attempted to resist the takeover.
• D) A ?rm uses share-based equity ?nancing for mergers, instead of cash.

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Definitions:

Oral Rehydration Therapy

A simple, cost-effective treatment used to prevent dehydration due to diarrhea, involving the oral ingestion of a solution of salts and sugars.

Dehydration

A condition resulting from the excessive loss of water from the body.

Plasticity

The tendency of new parts of the brain to take up the functions of injured parts.

Brain Compensate

The process by which the brain adjusts or alters its function in response to damage, injury, or developmental issues.