The Risk of Failure of an Acquisition Can Be Reduced

question 90

Multiple Choice

The risk of failure of an acquisition can be reduced by

• A) undervaluing the assets of an acquired firm.
• B) ensuring that firms are acquired in the home country.
• C) replacing high-level managers of an acquired firm.
• D) a detailed auditing of operations, financial position, and management culture.
• E) investing only in a firm that is managing to break even.

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Definitions:

Muscular Strength

The maximum amount of force a muscle or muscle group can exert in a single effort.

Running

A form of aerobic exercise that involves rapid foot movement to propel the body forward in a steady, rhythmic motion.

Exercise Shoes

Footwear designed specifically to provide support, stability, and comfort during physical activity, reducing the risk of injury.

Simulating

Imitating or replicating certain conditions or stimuli for the purpose of study, training, or experimentation.