When Managers Become Overly Focused on Making Acquisitions, It Is

question 128

Multiple Choice

When managers become overly focused on making acquisitions, it is

• A) because the skills of top executives are better used in making acquisitions than they are in daily organization operations.
• B) because it is more fun to do deals than to run the company.
• C) due to pressure from major stakeholders to diversify the firm.
• D) because acquisitions are a quick way to improve the financial standing of the firm.

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Definitions:

Realized

In finance, realized usually pertains to the profit or loss that occurs when an investment is sold for a price different than its purchasing price.

Economic Benefit

The advantage or benefit a person or entity receives in a transaction, often examined in tax and legal contexts.

Bookkeeping Services

Professional services offering systematic recording, reporting, and analysis of financial transactions of a business.

Common Stock

A type of security representing ownership in a corporation, with holders possibly entitled to dividends and voting rights.