All of the Following Are True of Overconfident CEOs EXCEPT

question 48

Multiple Choice

All of the following are true of overconfident CEOs EXCEPT

• A) overconfident CEOs tend to charge ahead with mergers and acquisitions even though they are aware that most acquisitions destroy shareholder value.
• B) overconfident CEOs view their company as undervalued by outside investors.
• C) overconfident CEOs are more likely to do deals that diversify their firm's lines of businesses.
• D) the overconfidence of CEOs may lead to hubris.
• E) overconfident CEOs were less likely to make an acquisition when they could avoid selling new stock to finance them.

---

Definitions:

Problematic Emotional Reactions

Emotional responses that are excessive or inappropriate to situations, often leading to difficulties in functioning.

Catastrophic Thinking

Unrealistic appraisals of stress that exaggerate the magnitude of one’s problems.

Albert Ellis

An influential psychologist known for developing Rational Emotive Behavior Therapy (REBT), a form of cognitive-behavioral therapy.

Over-reliance

The excessive dependence on something or someone.