Which of the Following Statements Regarding Efficiency Gains Is False

question 2

Multiple Choice

Which of the following statements regarding efficiency gains is false?

• A) Takeovers relying on the improvement of target management are difficult to complete, and post-takeover resistance to change can be great. Thus not all inefficiently run organizations are necessarily more efficient following a takeover.
• B) Although identifying poorly performing corporations is relatively easy, fixing them is another matter entirely.
• C) A justification that acquirers cite for paying a premium for a target is efficiency gains, which are often achieved through an elimination of duplication.
• D) A chief executive of an inefficiently run corporation can be ousted by current shareholders voting to replace the board of directors, and in fact a large number of ineffective managers are replaced in this way.

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Definitions:

Need for Achievement

A psychological drive that motivates individuals to accomplish goals and excel in their endeavors.

Accomplishment

Something that has been achieved successfully.

Self-Interest

Acting in a way that is beneficial to oneself, often without regard for others.

Motivation

Concept with two widely used meanings: (1) an internal state that leads to effort expended toward objectives and (2) an activity performed by one person to get another to accomplish work.