Which of the Following Is Perhaps the MOST Important Reason

question 71

Multiple Choice

Which of the following is perhaps the MOST important reason why acquisitions fail?

• A) The expense of the acquisition
• B) The timing of the acquisition
• C) Management's unwillingness to make the necessary effort to make the acquisition work effectively
• D) Incompetence on the part of workers in the acquired firm
• E) Difficulties in coordinating manufacturing activities

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Definitions:

Total Fixed Costs

The total of all expenses that do not change with the amount of production or output.

Marginal Cost Curve

A curve that shows the cost of producing one more unit of a good or service, typically upward sloping because of increasing marginal costs.

Average Variable Cost Curve

A graphical representation of the variable cost per unit at different levels of output.

Total Variable Costs

The sum of all costs that vary with the level of output or production in the short run, such as materials and labor expenses.