Question

If a publicly-traded MNC's managers make poor decisions that reduce its value, it may encourage other firms to acquire it.

a. True
b. False

Answer 1

If a publicly-traded MNC's managers make poor decisions that reduce its value, it may encourage other firms to acquire it.

Step-by-step explanation:

If a publicly-traded MNC's managers make poor decisions that reduce its value, it may encourage other firms to acquire it.

This statement is True.

When a publicly-traded multinational corporation (MNC) experiences a decrease in its value due to poor decision-making by its managers, it becomes a potential target for acquisition by other firms. This is because the reduced value may indicate that the MNC's assets or operations can be acquired at a lower price, making it an attractive opportunity for other companies looking to expand their business.