Which of the Following Statements Is False

question 45

Multiple Choice

Which of the following statements is false?

• A) All else being equal, larger firms, because they are more diversified, have an increased probability of bankruptcy.
• B) To justify a takeover based on operating losses, management would have to argue that the tax savings are over and above what the firm would save using carryback and carryforward provisions.
• C) It is possible to combine two companies with the result that the earnings per share of the merged company exceed the premerger earnings per share of either company, even when the merger itself creates no economic value.
• D) When an acquirer buys a private target, it provides the target's owners with a way to reduce their risk exposure by cashing out their investment in the private target and reinvesting in a diversified portfolio.

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Definitions:

Relationship Conflict

Conflict that arises from interpersonal incompatibilities, including emotional tension and friction between individuals, measured by animosity rather than differences in viewpoints.

Relationship Conflict

is a discord among individuals due to personal, emotional, or value differences, not necessarily related to tasks or work.

Communication

The process of transmitting information, ideas, emotions, skills, and knowledge from one entity or person to another through the use of mutually understood signs, symbols, or behavior.

Organizations

Entities comprising multiple people working together toward shared goals, structured to coordinate their activities and resources.