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Identify the Three Potential Sources of Strategic Relatedness Between Bidding

question 9

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Identify the three potential sources of strategic relatedness between bidding and target firms that were detailed by Lubatkin in 1983 and the four general reasons why bidding firms might want to engage in merger and acquisitions as detailed by Jensen and Ruback in 1983.


Definitions:

Stereotype Threat

The feeling of worry or nervousness in circumstances where an individual might inadvertently validate a negative cliché associated with their societal group.

Ingroup Bias

The tendency to favor and prioritize the interests of one's own group over those of others, often leading to prejudice and discrimination.

Warmth and Competence

A social psychology model evaluating how individuals perceive others based on their warmth (friendliness, trustworthiness) and competence (efficacy, skill).

Aversive Racism

A subtle form of racism that occurs in individuals who identify as egalitarian, characterized by avoiding racial minorities out of discomfort or anxiety.

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