What Institution Within a Firm Must Fail on Some Level

question 32

Multiple Choice

What institution within a firm must fail on some level for managers to be motivated to acquire another firm for the purposes of increasing their own compensation,shielding themselves against risk,or gaining prominence by running a larger firm?

• A)Legal department
• B)Corporate board
• C)Mergers and acquisitions program
• D)Firm bonus schedule
• E)Corporate governance

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Definitions:

Goodness-of-fit Test

A statistical test used to determine how well observed data fit a specific distribution or model.

Test of Independence

A statistical method used to determine if there is a significant association between two categorical variables.

Nonparametric Tests

Statistical tests that do not assume a specific distribution in the data and are used for ordinal or nominal data.

Spearman Rank

A non-parametric measure of rank correlation that assesses how well the relationship between two variables can be described using a monotonic function.