The Shareholders of a Target Firm Benefit the Most When

question 84

Multiple Choice

The shareholders of a target firm benefit the most when:

• A)an acquiring firm has the better management team and replaces the target firm's managers.
• B)the management of the target firm is more efficient than the management of the acquiring firm which replaces them.
• C)the management of both the acquiring firm and the target firm are as equivalent as possible.
• D)their current management team is kept in place even though the managers of the acquiring firm are more suited to manage the target firm's situation.
• E)their management team is technologically knowledgeable yet ineffective.

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Definitions:

Formal Authority

The power granted to an individual due to their position or role within an organization, enabling them to make decisions and enforce rules.

Participative Leadership

A leadership style in which the leader involves team members in decision-making processes and goal setting, fostering a sense of ownership and collaboration.

Warren Bennis

was a pioneering leadership scholar and author who contributed significantly to the study of leadership, emphasizing the importance of character, creativity, and adaptive capacity in leaders.

Philip Slater

was an American sociologist and playwright known for his work on social structure and dynamics, particularly in relation to modern American society.