When One Firm Buys Out Another Because It Is Thought

question 145

Multiple Choice

When one firm buys out another because it is thought that the two firms will complement each other in such a way that the output of the combined firms will be greater than the sum of the current individual outputs of the two companies,the managers are counting on

• A) synergy.
• B) closed system inversion.
• C) entropy.
• D) subsystem enhancement.
• E) open system conversion.

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Definitions:

Negative Reinforcers

In behavioral psychology, negative reinforcement is a process where an undesirable or harmful stimulus is removed after a particular behavior is exhibited, increasing the likelihood of that behavior being repeated in the future.

Extinction

In behavioral psychology, the process through which a conditioned response decreases or disappears as a result of repeated exposure without reinforcement.

Reinforcement

In psychology, a process by which a certain stimulus or action encourages a particular behaviour to occur again.

Punishment

The imposition of a penalty as retribution for an offense or undesirable behavior.