The CEO and the top management team at Conglomerate,Inc.have the unrealistic belief that they should have an aggressive merger and acquisition strategy because they can manage the assets of a target firm better than the managers of the target firm.Conglomerate,Inc.'s CEO and the top management team suffer from ________.
A)managerial hubris
B)the Icarus paradox
C)arbitrage fever
D)underconfidence

Question

Quizplus · Accepted Answer

The CEO and top management team at Conglomerate, Inc. have an unrealistic belief in their abilities to manage another firm's assets better than the current management team, which is a classic sign of managerial hubris. This can lead to overconfidence and a failure to accurately assess the risks and costs involved in mergers and acquisitions.

The CEO and the Top Management Team at Conglomerate,Inc