The Factors That Lead to Poor Long-Term Performance by Acquisitions

question 44

Multiple Choice

The factors that lead to poor long-term performance by acquisitions include all of the following EXCEPT firms:

• A) with insufficient diversification.
• B) having too much debt.
• C) being unable to achieve synergy.
• D) growing too large.

---

Definitions:

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression (e.g., 4 in 4x).

Model

A simplified representation of a system or phenomenon that describes its structure or function, often used in simulations.

Studentized Residuals

Residuals divided by an estimate of their standard deviation, used for identifying outliers in regression analysis.

R-Squared

A statistical measure that represents the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model.