Which of the Following Factors Is Most Likely a Reason

question 29

Multiple Choice

Which of the following factors is most likely a reason for the failure of a merger or acquisition?

• A) The size of the workforce of the acquiring firm was bigger than that of the acquired firm.
• B) The new business was too far from the areas of expertise of the acquiring firm.
• C) The accounting systems of both firms were different.
• D) The parent firm incurred high levels of research-and-development expenditure.

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Definitions:

Liability

The legal responsibility for one's actions or omissions, potentially resulting in the requirement to compensate for damage or loss.

Constructive Trust

An equitable trust that is imposed in the interests of fairness and justice when someone wrongfully holds legal title to property.

Indemnification

A legal obligation to compensate for loss, damage, or liability incurred by another party.

Breach

The violation or breaking of a law, duty, or contractual obligation.