Which of the Following Is a Reason to Pursue an Acquisition

question 56

Multiple Choice

Which of the following is a reason to pursue an acquisition?

• A) To limit diversification
• B) To strengthen existing capabilities
• C) To reduce debt
• D) To increase speed to market

---

Definitions:

External Costs

Costs incurred by someone who does not participate directly in a transaction or activity, often relating to environmental or societal impacts.

Socially Optimal

A condition or point at which the total benefits to society are maximized, often considered in the context of production or distribution of goods and services.

Negative Externality

A cost that affects a party who did not choose to incur that cost, often seen in environmental pollution where the public bears the cost not reflected in the market price.

Lawn Mowing

Lawn mowing refers to the act of cutting or trimming the grass in a lawn to maintain its appearance and health, often performed as a routine landscaping activity.