It is not surprising to see a rather __________ volume of mergers and acquisitions in Germany given how its __________ conflicts are resolved.
A) high; shareholder-lender
B) high; manager-stockholder
C) low; shareholder-lender
D) low; manager-stockholder

Question

Quizplus · Accepted Answer

The word "conflicts" suggests that the sentence is referring to how disputes or disagreements are resolved between managers and stockholders. Germany's system of corporate governance, known as "co-determination," gives workers the right to elect representatives who sit on company boards and have a say in decision-making. This means that managers and stockholders must work together and collaborate, resulting in less conflict and potentially fewer mergers and acquisitions. Therefore, a low volume of M&A activity is expected in Germany, making option D the correct choice. Option C is incorrect because it contradicts this expectation. Options A and B are also incorrect because they do not address the issue of corporate governance and conflict resolution in Germany.

It Is Not Surprising to See a Rather __________ Volume