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.

---

Definitions:

Case Advocacy

The direct support or representation of an individual or group's case or cause, typically in a legal or social service context.

Agency Policies

The rules and guidelines established by organizations or government bodies to govern operations and procedures within those entities.

Legislative Bodies

Institutions or groups of individuals vested with the power to make, amend, and repeal laws.

Appeal Procedures

The formal processes through which decisions or actions can be contested or challenged, typically in judicial, organizational, or academic settings.