Chapter 15 Flashcards

1
Q

This postulated that top managers typically overestimate their ability to create value from an acquisition, primarily because riding to the top of a corporation has given them an exaggerated sense of their own capabilities

A

The hubris hypothesis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

This postulated that management of the acquiring firm is often too optimistic about the value that can be created via an acquisition and is thus willing to pay a significant premium over a target firm’s market capitalization

A

The hubris hypothesis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Cross licensing

A

One is licensing technology and the other is licensing something else back from them

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

One foreign company combines with a local company, not merging but just working together on one specific project that needs this diverse set of skills

A

Joint venture

How well did you know this?
1
Not at all
2
3
4
5
Perfectly