A tycoon purchasing a loss making company will install new management teams only as long as the marginal value of the additional information these teams generate is worth the cost of installing them.

Question

Quizplus · Accepted Answer

This statement is true. A tycoon will only invest in new management teams if the benefits of their additional knowledge and expertise outweigh the cost of hiring them. If the company is already struggling financially, the tycoon must carefully consider whether additional expenses will ultimately lead to a sustainable turnaround for the business.

A Tycoon Purchasing a Loss Making Company Will Install New