Which of the Following Statements Regarding Efficiency Gains Is FALSE

question 9

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:

Pulmonary Circulations

The part of the circulatory system specifically responsible for carrying deoxygenated blood from the right side of the heart to the lungs and returning oxygenated blood back to the heart.

Systemic Circulations

The component of the cardiovascular system responsible for transporting oxygen-rich blood from the heart to the body and bringing oxygen-poor blood back to the heart.

Blood Supply

The provision of blood to different parts of the body, facilitated by the circulatory system.

Creatine Phosphokinase

An enzyme found in the heart, brain, and skeletal muscle that plays a key role in the energy storage and utilization processes.