In 1997 CSX Successfully Purchased a Significant Share of Conrail

question 43

Multiple Choice

In 1997 CSX successfully purchased a significant share of Conrail. Immediately after the first offer was announced and the acquisition eventually consummated, the price of CSX fell below preacquisition levels and took many years to recover. This may be an example of ________.

• A) loss aversion
• B) mental accounting
• C) overreaction
• D) managerial overconfidence

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Definitions:

Enlightenment Thinking

A philosophical movement of the 17th and 18th centuries emphasizing reason, individualism, and skepticism towards traditional doctrines, leading to advances in science, politics, and human rights.

Humane Treatment

The act of showing compassion and consideration, ensuring the welfare of others, especially in the care and treatment of animals and people.

Comanche

A Native American tribe historically known for their horse culture and prowess in the plains area of what is now the United States.