The Rising Ratio of Divestitures to New Acquisitions That Occurred

question 17

Multiple Choice

The rising ratio of divestitures to new acquisitions that occurred in the past suggests that

• A) poison pills are no longer effective as a defense against takeovers.
• B) too much diversification strained the operating capabilities of many firms.
• C) the portfolio effect has been a highly successful method of reducing risk.
• D) multinational firms are increasingly considered high risky investments.

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Definitions:

Broadbent's Filter Theory

A theory suggesting that information is filtered through a selective attention mechanism that allows only a portion of sensory inputs to reach consciousness.

Sensory Modalities

The ways through which living organisms perceive their environment, such as sight, smell, touch, taste, and hearing.

Memory Tasks

Activities or exercises designed to test or improve the ability to recall information or experiences.

Sensory Registers

Memory systems that temporarily hold information received from the senses, allowing initial processing before further cognitive analysis.