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:

Key Team Members

Individuals who play crucial roles in a team, contributing significantly to its success or functionality.

Technology Familiarity

The degree to which an individual or organization is accustomed to and knowledgeable about the use of specific technologies.

DPCI Score

A method for evaluating the Diagnostic Predictive Capability Index, commonly used in healthcare to assess the accuracy of diagnostic tests.

All Team Members

Every individual who is part of a group working together towards a shared objective.