The Best Acquisitions Are Driven by Either Strategic or Defensive

question 69

True/False

The best acquisitions are driven by either strategic or defensive reasons. For example, the Teva Pharmaceuticals' acquisition of Cephalon should be driven by strategic factors (e.g., cost and revenue synergies) or defensive reasons (e.g., to gain sales revenue in the short run).

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Definitions:

Bananas

A type of elongated, edible fruit with soft flesh and a yellow peel when ripe, primarily grown in tropical regions.

Nuts

Edible seeds typically enclosed in a hard shell, rich in nutrients, and consumed worldwide as snacks or ingredients in various dishes.

Berries

Small, pulpy, and often edible fruits, typically colorful and sweet, sour, or tart in taste; not a precise botanical term.

Utility Function

A mathematical representation that defines how much utility or satisfaction a consumer derives from consuming goods and services.