Refer to exhibit 32-3. the exhibit shows the breakdown of benefits and costs for a five-person community considering whether to purchase a $5,000 statue of adam smith to put in the center of the public square. if simple majority voting determines the outcome, the statue be purchased, and the total costs are the total benefits of the statue.

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.