Which One of the Following Statements Is Correct

question 5

Multiple Choice

Which one of the following statements is correct?

• A)The bootstrapping effect refers to a bidder with weaker corporate governance benefiting from the better corporate governance of its target.
• B)The positive spillover effect refers to the improvement in the target's corporate governance as a result of it being taken over by a bidder with better corporate governance.
• C)The negative spillover effect refers to the worsening of the target's corporate governance as a result of it being taken over by a bidder with weaker corporate governance.
• D)All of the above.

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Definitions:

Optimal Solutions

The most favorable or desirable solutions among all feasible solutions in a problem-solving or decision-making process.

Ethical Dilemmas

Situations in which a person faces conflicting moral principles, making it challenging to decide the right course of action.

Stakeholders

The groups of people affected by a firm’s decisions.

Ownership Interest

Refers to the legal rights and claims an individual or entity has over a property or asset.