Which of the Following Is Probably the Least Likely Reason

question 15

Multiple Choice

Which of the following is probably the least likely reason for acquirers to pay too much in an acquisition?

• A) Overbidding
• B) Over optimistic appraisal of market potential
• C) Over estimation of synergies
• D) Overuse of conventional financial statements

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Definitions:

Sign Stimuli

External sensory cues that trigger a fixed action pattern or innate behavioral response in an animal.

Innate Releasing Mechanisms

Biological processes or structures that trigger specific behaviors in response to certain stimuli.

Environmental Stimuli

External factors or conditions in the environment that can elicit responses or reactions from organisms.

William McDougall

A psychologist known for his work in social psychology and the concept of instinct theory of motivation.