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:

Glacier

A large, slow-moving mass of ice formed by the accumulation and compaction of snow on mountains or near poles.

Bedrock

The solid rock layer beneath the soil or superficial material, serving as the foundation for geological features and construction.

Fracture

A break or crack in rock or bone.

Icebergs

Large pieces of freshwater ice that have broken off from a glacier or ice shelf and float in open water.