More than one-half of all mergers fail or do not live up to financial expectations
Indicate whether the statement is true or false
TRUE
Explanation: More than one-half of mergers do not succeed in achieving greater market value. The reasons for this include the fact that top executives take their eyes off the day-to-day business while focusing on the merger. Revenues and profits ultimately suffer because day-to-day activities are neglected. Conflicts may also arise due to divided loyalties, hidden agendas, or power struggles within the newly combined management team. Employees may be nervous because most mergers result in the elimination of jobs, and more turnover may be created.
You might also like to view...
Which of the following questions about a proposed action is NOT a key question in Bagley's ethical decision tree?
A. Is it legal? B. Does it maximize shareholder value? C. Is it ethical? D. Would it be ethical not to do it? E. Should the effect of it be disclosed to shareholders?
According to Bartlett, which of the following was the first stage of development for successful organizations that avoided the myth of the ideal organizational structure?
A) transitioning from ethnocentric and polycentric to geocentric orientation B) building channels of communication between managers in various parts of the world C) developing organization norms and values to support decision making D) moving from international division to a worldwide product division
IM systems designed for large scale corporate use are called what?
A) Branded messaging sites B) Presence awareness sites C) Community Q&A sites D) Enterprise instant messaging sites E) Content curation sites
According to the text, the types of information an IC needs to have reported by subsidiaries include all of the following except:
A. technological. B. market opportunities. C. cultural. D. political and economic events. E. financial.