Question

The_______hypothesis postulates that top managers typicalljy overstate their ability to create value from acquisition primarily because rising to the top of a corporation has given then an exaggerated sense of the own capabilities.

a. recognition.
b. optimistic.
c. hybrid.
d. hubris.

Answer 1

Option D

Hubris hypothesis

Step-by-step explanation:

The hubris hypothesis attempts to explain the effect of overconfidence at a managerial level, and how it affects business practices negatively. It can lead to several actions like rash decisions, expensive company acquisitions, and buy-outs e.t.c.

In summary, it tries to explain the effect of pride on clear reasoning and progress at a managerial level in companies.

Therefore, it fits perfectly into the sentence in the question above, as the question is explaining the effect of pride on the performance of newly promoted managers.

Option D is the correct answer