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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