Which of the Following Is the Probable Consequence of a Company's

question 39

Multiple Choice

Which of the following is the probable consequence of a company's inability to integrate two divergent corporate cultures after an acquisition?

• A) Low management turnover
• B) Poor commercialization of the product
• C) An inability to realize potential gains from synergies
• D) The stock of highly diversified companies is valued lower
• E) Risks are shared by all

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Definitions:

Opportunity Cost

The financial impact of bypassing the next most favorable choice in a decision.

Transfer Payments

These are payments made by the government to individuals or other entities without the government receiving any goods or services in return, such as welfare checks.

Government Budget Deficit

A situation where the government's expenditures exceed its revenues over a specified period of time, leading to borrowing or debt accumulation.

Federal Deficits

The financial situation in which the government's expenditures exceed its revenues in a given fiscal year.