Verbal Review'15, Q70
Q The author of the passage implies that which of the following is a possible
partial explanation for acquisition behavior during the 1970s and 1980s?
a. Managers wished to imitate other managers primarily because they saw
how financially beneficial other firms’ acquisitions were.
b. Managers miscalculated the value of firms that were to be acquired.
c. Lack of consensus within boards of directors resulted in their imposing
conflicting goals on managers.
d. Total compensation packages for managers increased during that period.
e. The value of bidding firms’ stock increased significantly when
prospective mergers were announced.
Hi Experts,
I shortlisted two options (A) & (B) and finally went ahead with marking (A). Though the correct answer is (b) and I am not clear with the explanation.
Can you please help me in understanding the answer choice.
Thanks
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