Acquisitions driven by a manager's wish for a larger company are known as what?
AEmpire building
BAsset stripping
CMarket timing
DWindow dressing
Answer & Solution
Correct answer: A. Empire building
Managers may chase size rather than shareholder value and overpay for investments.
Keep practising Corporate Finance
Browse all Corporate Finance questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
An optimal capital structure is one that does what?Why is debt in the capital structure beneficial up to a certain point?Which working capital technique converts debtors to cash?An investment bank helps a firm raise capital through which listings?Firms hedge market risk exposures mainly using what?Which tool is seen as aligning management with stockholder interests?Why do stockholders favor riskier projects than bondholders do?ROE is 15 percent, equity cost 12 percent. Walter model advice?