If a Multinational Firm Paid Too High a Premium for the Common

question 52

Multiple Choice

If a multinational firm paid too high a premium for the common stock of the company,this can lead to

• A) divestiture.
• B) expansion.
• C) cost savings.
• D) acquisition.

---

Definitions:

Providing Redundancy

The act of incorporating extra components, systems, or processes to increase reliability and avoid failure in case of a component breakdown.

Backup

Backup refers to the process of copying and archiving computer data so it may be used to restore the original after a data loss event.

System Reliability

The probability that a system will perform its intended function adequately for a specified period under the given conditions.

Redundant Component

A component in a system that is not essential for immediate function but serves as a backup to increase reliability.