A Key Risk of Acquisitions Is That a Firm May

question 18

True/False

A key risk of acquisitions is that a firm may substitute an ability to buy innovations for an ability to produce innovations internally.

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Definitions:

Halo Effect

A cognitive bias where an impression formed from one trait or factor influences the perception of other traits.

Attribution Error

The cognitive bias that leads individuals to misattribute the reasons for their own or others' behaviors, often overestimating personality factors while underestimating situational influences.

Performance Dimensions

Various criteria or aspects by which an individual's or an organization's performance is evaluated.

Behavior Modification

A technique used to change behavior through the systematic application of the principles of conditioning.